BlackRock Returns to Ethereum After Chaos-Inducing Sell-Off

The investment giant BlackRock surprised the crypto market by resuming its massive purchases of Ethereum, only 24 hours after making a spectacular sale of more than 8,000 ETH. Why this sudden turnaround?

BlackRock resumes its Ethereum acquisitions

BlackRock surprised the crypto community yesterday by making a massive sale of 8,172 ETH, thus breaking a 30-day streak of uninterrupted acquisitions. 

According to data from Lookonchain, the American asset manager resumed its usual activity the very next day. In less than an hour, the firm withdrew 11,185 ETH from Coinbase Prime, worth 27.2 million dollars.

This acquisition took place in two separate transactions. It occurred only a few hours after a second deposit of ETH to the exchange platform, involving 10,500 tokens worth 24.15 million dollars. These contradictory movements raise legitimate questions about BlackRock’s actual strategy.

The timing of these operations is intriguing. The first massive sale coincided with a drop in Ethereum’s price below the critical threshold of 2,500 dollars. 

This perfect synchronization between institutional selling and price decline is probably not a coincidence. 

Market observers now question a potential portfolio rebalancing strategy or a tactical reaction to the current volatility.

The impact of these moves on the market remains considerable. BlackRock holds volumes large enough to significantly influence Ethereum prices. 

This ability to influence turns every decision of the firm into a market signal closely watched by the entire crypto ecosystem.

An accumulation strategy becoming clearer despite volatility

Analysts now favor the hypothesis of a portfolio rebalancing strategy rather than an abandonment of the Ethereum strategy. 

This interpretation echoes the persistence of positive inflows observed across all American Bitcoin and Ethereum ETFs, particularly BlackRock’s.

BlackRock’s moves fit into a broader context of institutional accumulation. Crypto “whales” holding more than 10,000 ETH accumulated 265 million dollars on June 21, according to CryptoQuant. These large investors seem to ignore the recent volatility to position themselves in Ethereum over the medium term.

This strategy mirrors what has been observed in bitcoin, where BlackRock now controls more than 3% of the circulating supply via its IBIT ETF. The asset manager seems to be applying a similar approach to Ethereum, despite recent fluctuations.

BlackRock’s resumption of Ethereum purchases, accompanied by a 5.54% price increase, confirms institutional appetite for the second crypto. These tactical moves likely mask a long-term accumulation strategy that could redefine the crypto market balances. 

Breaking above 2,700 dollars now remains the target to watch to confirm this bullish momentum. Meanwhile, BlackRock’s moves fuel hope that analysts’ forecasts – such as Peter Brandt’s prediction of Ether reaching 4,000 dollars – could indeed come true.