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The world’s largest asset manager, BlackRock, has once again deposited $383,900,000 worth of Bitcoin (BC) at Coinbase Prime. As spotted from the tracking platform on the Lookonchain chain, the asset manager also moved about $122 million of Ethereum (ETH).
BlackRock’s recurring Bitcoin transfers raise concern
Specifically, Coinbase Prime manages crypto assets from institutional investors, both for trading and storage. Therefore, the large volume of Bitcoin that BlackRock deposited on Coinbase triggered selling speculations.
Some market participants wonder if the largest asset manager is aware of a development that retail traders have not yet caught on to. They assume that BlackRock is preparing to throw a considerable amount of the iconic crypto asset into the market.
BlackRock has not yet made any sales moves, and deposits on Coinbase Prime could be a custodial or operational move. Asset managers have been known to move Bitcoin for safekeeping, auditing or liquidity management.
Although no specific action has been taken regarding the movement of Bitcoin, market participants are closely monitoring the evolution. Such a large move by BlackRock is capable of influencing broader market sentiment.
Given the volatility of the crypto market in October, catalyzed by macroeconomic tensions, investors are cautious. Repeated deposits could trigger potential selling pressure on BTC and cause prices to fall.
As U.Today reported, BlackRock, exactly 10 days ago, made a similar deposit of 2,854 BTC valued at approx. $314 million at the exchange. Understandably, the frequency is with regard to investors who are trying to understand if there is a model for the movements of the asset manager.
Traders prepare for liquidations as Bitcoin Eyes $112,600
Despite the concerns, Bitcoin has risen by 2.05% in the last 24 hours and exchanges hands at $110,564.53. The coin reached the $110,000 resistance after rising from a daily low of $106,376.69 in the period.
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However, the volume of trade did not enjoy the same increase in the price of Bitcoin. The trading volume of the asset is currently down 17.37% to $63.91 billion.
BlackRock’s move of a significant volume of Bitcoin several times in October only to Coinbase Prime seems to have slowed the interest of market participants to accumulate the coin. Perhaps, they anticipate further decline in the perspective of the price.
Interestingly, the Bitcoin market could witness a massive liquidation if the price climbs further to $112,600. Data shows that most of the short position traders may suffer severe liquidation if ecosystem bulls drive higher prices.
As the volatile month of October gradually unfolds, traders want to see what November has to offer in terms of price outlook for Bitcoin.
