Asset manager BlackRock has transferred millions of dollars in Bitcoin and Ethereum to the crypto exchange Coinbase, a move that suggests an intention to offload these coins. This comes as the on-chain analytics platform CryptoQuant stated that the bear market scenario is becoming more relevant.
BlackRock Transfers Over $200 Million in Bitcoin and Ethereum
Arkham data shows that the asset manager transferred 2,292 BTC, worth almost $200 million, and 9,976 ETH, worth $29.23 million, into Coinbase. This follows the outflows that the Bitcoin and Ethereum ETFs recorded yesterday.
SoSo Value data shows that the BTC ETFs recorded a net daily outflow of $189 million on December 23, with BlackRock seeing outflows of $157 million. Meanwhile, the ETH ETFs saw daily net outflows of $96 million, with $25 million leaving BlackRock’s ETHA fund.
This comes as the crypto market sustains its downtrend, with BTC and other crypto assets struggling to break above major resistance levels. Specifically, the flagship crypto is trading below $90,000 and has failed to break above $90,000, even as other major assets, including stocks and gold, rally.
As CoinGape reported, Bitcoin continues to face selling pressure from the BTC ETFs. As a result, analysts have warned that BTC risks dropping below $85,000 even as bear market concerns mount.
Further data from SoSo Value shows that these BTC ETFs have recorded daily net outflows in seven out of the last ten trading days. These funds have also recorded a net outflow of $629 million since the start of this month.
CryptoQuant Flags Market Risk
In a blog post, CryptoQuant analyst Woominkyu stated that the Bitcoin bear market is becoming more relevant. The analysis noted that on October 21, the BTC Combined Market Index (BCMI) returning to the 0.5 zone was interpreted as a cooling phase rather than a cycle top.
However, since then, the BTC price has declined materially, and BCMI has fallen together with the price. Woominkyu noted that this confirms that the market has not only cooled through time but has reset through both price and on-chain momentum.
The analysis further stated that historically, meaningful cycle bottoms in 2019 and 2023 formed when BCMI reached the 0.25 and 0.35 range, levels that have reflected full sentiment compression and structural reset. At the current levels, the Bitcoin Combined Market Index is below equilibrium but still well above historical bottom zones.
However, from a data-driven perspective, the CryptoQuant analysis noted that this opens the possibility that the market is transitioning into a bear phase and not just experiencing a pullback. If past patterns repeat, a more durable bottom may form only if BCMI revisits 2019-2023 levels.
As CoinGape reported, the Bitcoin bear market risk is mounting as veteran analyst Peter Brant recently pointed to 80% declines in every major cycle. Therefore, BTC still risks dropping to as low as $25,000.
Meanwhile, CryptoQuant stated in the analysis that the bear market scenario is worth considering. The analysis added that at this stage, the market appears to be in a downward transition rather than a completed reset.