Key Takeaways
- Bitcoin’s price has stayed fairly stable, despite several bearish moves.
- Bitcoin ETFs have seen a six-day losing streak.
- Figureheads are divided on Bitcoin’s future price moves.
Bitcoin held steady near recent highs on Monday despite more than $1 billion in withdrawals from BlackRock’s spot Bitcoin ETF and a six-day losing streak across US Bitcoin funds.
The selling pressure comes as Michael Saylor’s Strategy also temporarily paused its aggressive Bitcoin buying to repurchase debt, fueling debate over whether institutional investors are becoming more defensive.
BlackRock ‘Sells’ $1B Bitcoin
A widely shared Arkham post showing clusters of “BlackRock”-labeled wallets sending Bitcoin to exchanges prompted some traders to question whether institutional sentiment toward crypto was deteriorating.
However, others regarded the widely circulated headlines as misleading, particularly given that Bitcoin’s price showed little reaction to the selling and continued trading near recent highs.
When investors sell shares in spot Bitcoin ETFs such as IBIT, the fund manager must redeem those shares by selling portions of the underlying Bitcoin held in custody.
The blockchain transfers tracked by Arkham were linked to that process.
In short, the transactions reflected routine ETF redemption activity rather than BlackRock fully abandoning its long-term Bitcoin strategy.
One X user wrote: “Isn’t it time to stop these posts for engagement bait?
“You know better than anyone that it’s not “BlackRock” itself selling BTC, it’s their customers.”
Nonetheless, BlackRock’s IBIT accounted for the majority of last week’s withdrawals from the US Spot Bitcoin ETF market, which collectively posted more than $1.2 billion in net outflows over the period.
Despite recent selling, IBIT remains the largest spot Bitcoin ETF in the US and continues to manage tens of billions of dollars in Bitcoin holdings.
Institutional Demand Cooling After Rally
The latest withdrawals marked the sixth consecutive session of net outflows for US-listed Bitcoin ETFs, signaling a slowdown in institutional momentum after months of aggressive accumulation earlier in the cycle.
Funds tracking Bitcoin have shed more than $1.5 billion since mid-May as investors pulled capital from several of the largest crypto investment products.
Some large financial firms have already scaled back exposure this year.
Trading firm Jane Street significantly reduced its Bitcoin ETF positions during the first quarter, while Harvard also trimmed holdings, according to recent filings.
At the same time, newer Ethereum-based crypto ETF launches have struggled to generate the same level of investor demand as during the initial Bitcoin ETF boom.
Strategy Pauses Buying to Tackle Debt
The softer ETF flows come as Michael Saylor’s Strategy temporarily stepped away from its long-running Bitcoin acquisition strategy.
Instead of adding to its Bitcoin reserves, the company recently repurchased roughly $1.5 billion of its own convertible debt.
Strategy remains the largest corporate holder of Bitcoin globally, controlling more than 840,000 BTC, worth over $65 billion at current prices.
However, the decision attracted attention because the company spent years aggressively issuing debt and equity to finance additional Bitcoin purchases.
It comes after Saylor faced fresh scrutiny earlier this month for suggesting the company could eventually sell a portion of its Bitcoin holdings if needed to support broader financial obligations.
Saylor made the comments shortly after the company reported a record $12.54 billion quarterly net loss, driven largely by Bitcoin’s sharp decline during the first quarter.
The company has increasingly relied on preferred stock offerings and debt markets to fund purchases, while also taking on sizable annual dividend commitments tied to newer financing structures.
Bitcoin Price Absorbs Selling Pressure
Despite heavy ETF withdrawals and signs of institutional caution, Bitcoin’s price showed little reaction, remaining relatively stable around $76,000.
The price holds points to deeper liquidity conditions and potential whale accumulation as possible stabilizing factors, even after billions of dollars in ETF-related selling.
It could also be argued that the muted price action reinforces the view that ETF outflows do not signal long-term bearish sentiment.
Bitcoin Price Struggles To Rally
What has surprised many traders, however, is that Bitcoin’s price has remained relatively subdued despite a growing list of seemingly bullish developments.
Blockchain analytics firm Santiment recently reported a sharp rise in wallets holding at least 100 BTC, suggesting larger investors have continued buying through periods of weak retail sentiment.
Some experts said the muted price reaction could reflect the sheer scale of today’s Bitcoin market, where even multibillion-dollar purchases may not move prices as dramatically as in previous cycles.
Last week, crypto commentator and author Adam Livingston pushed back against complaints from traders questioning why Bitcoin prices were not surging after Strategy’s latest purchase.
“Strategy just bought about 25,000 coins,” Livingston wrote on X, “25,000 BTC is about 0.82% of 3.04 million BTC weekly spot volume.”
He argued that the scale of global trade makes it difficult for a single buyer to immediately raise Bitcoin’s price.
The disconnect between strong long-term accumulation and relatively flat price action has divided figureheads over what comes next.
Some market analysts remain skeptical that Bitcoin will revisit $100,000 anytime soon, with Motley Fool analyst David Jagielski claiming it was unlikely.
Meanwhile, analysts such as Benjamin Cowen claim that Bitcoin could drop back below $60,000 before any meaningful rally.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
