The crypto market is showing tension.
After failing to stay above $94,000, Bitcoin decided [BTC] fell 2.6% to a low of around $89,596, at the time of writing. At the same time Ethereum [ETH] reflected this move with a 3.72% decline to $3,038.
This sharp correction has fueled fear among retail investors. But behind the panic, institutional giants are increasing and doubling down on their liabilities.
BlackRock has deposited Bitcoin and Ethereum
On December 5, BlackRock deposited $125.5 million in BTC and $2.5 million in ETH to Coinbase.
Analyst Ted Pillows warns that this could precede an institutional sell-off, potentially leading to further instability.
He said:
“Sell more?”
And so the question arises: Is the current dip a signal for deeper selling, or is it just smart money quietly defining the new, higher bottom of this ETF-driven cycle?
Why did this measure cause concern?
The recent price drop, following Bitcoin’s inability to hold the $94,000 level, has inevitably drawn attention to major institutional moves, most notably BlackRock’s multi-million dollar deposit of BTC and ETH at Coinbase.
In the crypto market, large transfers to exchanges are quickly seen as bearish, mainly due to liquidation risk, as they increase the supply that can be sold.
With ETF outflows and macro uncertainty already raising nerves, the market is reacting sharply to such moves.
So if institutions were to liquidate, the extra supply could drive prices lower, a fear reinforced by previous cases where large deposits preceded corrections.
For retail investors, seeing large funds move their assets to trading platforms is often a signal that trouble lies ahead.
However, this panic misses an important point: Managing multi-billion dollar ETFs often requires routine transfers that have nothing to do with an upcoming sale.
More sales in prospect?
However, a down payment alone does not automatically equate to further sales.
For an ETF issuer like BlackRock, such fund movements often reflect routine operational needs, custody adjustments, redemption processing, rebalancing or other internal workflows.
BlackRock relies on Coinbase Prime for institutional custody and high-volume trading, reflecting a systematic strategy rather than panic selling.
Such large transfers are often routine steps in the ETF creation and redemption process, designed to keep prices aligned.
Still, technical indicators continue to point to a bearish near-term outlook.
At the time of writing, BTC’s Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) were below their neutral levels, confirming the dominance of short- to medium-term selling momentum.
Source: trading view
To decisively turn the market narrative from bear in control to bullish breakout, Bitcoin must successfully cross and hold the key resistance level at $98,000.
Until then, the market remains technically subdued and vulnerable to volatility.
Final thoughts
- The retail market is seeing panic, but institutional behavior indicates a much more calculated response to volatility.
- Technical indicators still favor short-term bears, with BTC needing to reclaim $98,000 to convincingly reverse momentum.