BlackRock’s BTC Withdrawals Fuel Bitcoin Price Drop

On November 18, 2025, clients of BlackRock withdrew over $145 million in Bitcoin from its IBIT exchange-traded fund, signaling caution among institutional investors. This followed a weekly outflow of a record $570 million from the fund since October 29, 2025, according to CryptoQuant CEO Ki Young Ju. More recently, an address reportedly linked to BlackRock executed a $146.3 million withdrawal, involving 1,475 BTC and 3,878 Ethereum (ETH), from Coinbase over a seven-hour period on January 9, 2026. Earlier, on January 7, 2026, BlackRock repositioned approximately $460 million worth of Bitcoin and Ethereum from major exchanges, including 3,040 BTC valued at $270 million and 61,359 ETH worth $190 million, transferring them to private custody solutions.

These institutional movements are taking place amid a sensitive period for Bitcoin, which traded between $90,000 and $100,000 as of January 17, 2026. The price of Bitcoin slipped to $95,000 on January 17, 2026, following reports of BlackRock moving multiple BTC tranches from Coinbase Prime. Despite these outflows, US-listed spot Bitcoin ETFs experienced a $116.89 million net inflow on January 14, 2026, reversing five consecutive sessions of net outflows. MEXC Research Chief Analyst Sean Yang noted a positive shift in sentiment, highlighting Bitcoin’s rise of over 8% since the beginning of January as an indicator of sellers’ strength being exhausted. Yang also stated that Historically, January brings an average of 9% growth for Bitcoin.

The withdrawals by BlackRock clients are interpreted as a signal of caution among institutional investors within a volatile market. While some speculate these moves could be for selling, other analyses suggest transfers to private custody solutions often indicate a strategic shift towards long-term holding rather than immediate trading. The broader market has also been influenced by the lack of a decision on regulatory clarity. On January 14, 2026, Senator Tim Scott, Chair of the Senate Banking Committee, postponed a vote on the Digital Asset Market Clarity Act. This delay effectively halted a significant legislative effort to establish comprehensive regulatory frameworks for the digital asset market, a move the industry argues has historically stifled innovation in the U.S..

The precise reasons behind each individual BlackRock withdrawal and whether they directly correlate with immediate selling pressure or are part of broader rebalancing strategies have not been fully disclosed by the firm. The exact timeline for a definitive decision on the Digital Asset Market Clarity Act or similar regulatory frameworks remains uncertain following the recent postponement.

Market participants will likely continue to monitor institutional capital flows and regulatory developments closely. The performance of U.S. spot Bitcoin ETFs, such as BlackRock’s IBIT, Fidelity’s FBTC, and Ark Invest’s ARKB, will offer insights into Bitcoin’s potential price direction, as their flows are considered a critical liquidity signal. Further progress on market structure legislation, like the CLARITY Act, could accelerate the U.S. crypto asset market and intensify pressure on other governments to establish their own regulatory frameworks.

Readers interested in the cryptocurrency market should monitor official announcements from major asset managers like BlackRock regarding their digital asset strategies. Staying informed about legislative developments surrounding cryptocurrency regulation, particularly in the U.S., is crucial for understanding potential market impacts. Observing trends in institutional Bitcoin ETF inflows and outflows can offer insights into broader market sentiment. Consulting multiple credible news sources for comprehensive market analysis is recommended. Additionally, understanding that market volatility can be influenced by both institutional actions and regulatory uncertainty is key for informed decision-making.