The cryptocurrency market has successfully passed one of the biggest institutional liquidity tests in recent years. The hidden $1.29 billion sale of BlackRock’s Spot Bitcoin ETF (IBIT), the world’s largest asset manager, did not cause any lasting damage to the Bitcoin price. The market absorbed this huge selling pressure like a sponge and took a bullish stance.
Tom Dunleavy, a well-known analyst who appeared on Scott Melker’s show, discussed this large-scale “whale” movement and its impact on the market.
An unnamed large institutional investor suddenly sold about $1.29 billion worth of shares in BlackRock’s Bitcoin Spot ETF. The sale reportedly took place in the over-the-counter (OTC) market, or a deep liquidity pool on a low-profile exchange, to avoid a direct impact on market prices.
Coinciding with general outflows from the US-based Bitcoin Spot ETF, the move initially caused a brief wave of panic in the market, but Bitcoin prices weathered the shock with little blink of an eye.
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Tom Dunleavy analyzed the program’s development and emphasized that the fact that this billion dollar sale did not shake up Bitcoin shows that the Bitcoin market is institutionally mature. Mr. Dunleavy emphasized that:
Recalling that in past years even hundreds of millions of dollars in sales could trigger a 10% to 20% plunge in Bitcoin, the analyst said that the fact that the $1.29 billion volume was so easily absorbed by the spot market was a historic turning point.
The analyst said the depth that Spot Bitcoin ETFs bring to the market can prevent large capital outflows from dragging prices into freefall. This ecosystem built by BlackRock and other issuers acts as a kind of safety belt for the market.
According to the analyst, a whale sell-off of this magnitude is unable to drive prices lower, highlighting the market’s bullish sentiment and large orders from institutional investors.
Experts say Bitcoin’s resilience to billions of dollars in selling pressure is a very strong signal of confidence for long-term investors, despite regular outflows from the US Spot Bitcoin ETF.
*This is not investment advice.
