Blackrock is once again directing its attention to the world’s largest cryptocurrency, buying another 1,884 Bitcoin (BTC) on Tuesday, October 21.
The transaction, worth some $200 million, has pushed the fund’s total holdings to 803,200 BTC, valued at approximately $86.5 billion, according to data shared by HeyApollo ETF tracker co-founder Thomas Fahrer.
Interestingly, the fresh inflows came as Bitcoin’s price continued to face selling pressure.
The asset had been crashing prior to the inflows, dropping nearly 3% to an intraday low of $107,552 as it wiped out its weekend gains. The move came alongside a broader crypto market pullback, with total capitalization slipping over 2% to $3.67 trillion.
U.S. spot Bitcoin ETFs outflows contributed to the correction, as BlackRock itself witnessed a $101 million redemption the day prior. In the evening hours, the crypto recuperated past the $113,000 mark, but it has since lost its momentum again.
At the time of publication, Bitcoin is trading at $107,890, down 0.14% on the 24-hour chart and more than 4% on the week.
Why is Bitcoin crashing?
The current crypto cycle is becoming “nearly impossible to read,” according to trading expert Ted Pillows, who cited insider trading controversies and macroeconomic tensions as key culprits.
Bitcoin’s ongoing drop, however, is potentially the result of recent whale activity as well.
Indeed, the $10 billion HyperUnit whale who made $200 million shorting the China tariff crash earlier this month has once again shorted $234 million worth of BTC with a liquidation price at $123,000.
Whether this whale is just lucky or prescient, his trades could signal that the market’s biggest players are still betting against the digital gold’s short-term comeback.
Featured image via Shutterstock
