BlackRock Dumps $276M in BTC and $83M in ETH Amid Market Downturn

BlackRock, one of the world's largest asset managers, sold $276 million worth of Bitcoin and $83 million in Ethereum in early January 2026, reflecting broader market uncertainty. The moves came amid a broader correction in the crypto space, with Bitcoin ETFs recording significant outflows. These outflows marked a sharp reversal from the earlier inflow streak at the start of the year.

The timing of the sales coincided with a slowdown in long-term holder selling for Bitcoin, a sign that accumulation activity may be building. Data from Lookonchain showed that Bitcoin's Exchange Inflow Coin Days Destroyed (CDD) had dropped to its lowest level since 2017. This suggests that older coins are moving less frequently onto exchanges.

Bitcoin's Exchange Inflow CDD metric on Binance has fallen to its lowest level since 2017, signaling that older coins are barely moving onto exchanges. This trend aligns with broader onchain data suggesting that older investors are stepping back from selling, while newer participants are offloading positions at a loss. This dynamic reflects a market reset phase after recent price surges.

Why Did This Happen?

BlackRock's recent Bitcoin selling came after a period of accumulation. In the first week of January 2026, the company added nearly 9,619 BTC valued at $878 million, reinforcing its long-term Bitcoin holdings. This was followed by a sharp market pullback in December 2025, which led to a temporary drawdown in its position. At the end of January 2025, BlackRock's Bitcoin holdings peaked at around 804,000 BTC, valued at $96.5 billion. By early January 2026, its holdings had dropped to 771,000 BTC but had since rebounded.

The Ethereum sales came as part of a broader shift in investor sentiment. Ethereum ETFs recorded $98 million in outflows on January 7, 2026, marking the first net outflow since the product's debut in November 2025. Grayscale's ETHE alone accounted for $52 million of the total outflow.

How Did Markets React?

Bitcoin traded around $90,000 in early January 2026 after failing to hold above the $94,000–$95,000 resistance level. The price correction followed a rejection at that key level on January 6, 2026, according to analyst TedPillows. Ethereum also experienced a similar correction, trading within a defined range as sellers defended the $3,300–3,350 supply zone.

The market's technical structure showed signs of consolidation rather than capitulation. Bitcoin's 7-day RSI stood at 80.65, indicating an overbought condition. This prompted investors and traders to book profits near key levels like $95,000. ETH buyers, meanwhile, consistently stepped in near the $2,780–2,850 demand zone.

What Are Analysts Watching Next?

Analysts are monitoring several onchain indicators to gauge whether the current market reset is a temporary correction or the beginning of a new accumulation phase. BlackRock's Ethereum accumulation over three consecutive days, amounting to $149 million, suggests continued institutional interest despite the recent volatility.

Whales are also locking supply into staking, reducing immediate sell-side pressure. On January 7, 2026, a whale redeployed $31.7 million via Wintermute and converted it into over 40,000 stETH. This move removed liquidity from the market, reinforcing a stable price environment.

Exchange outflows have also continued to drain sell-side liquidity. Recent daily figures showed withdrawals exceeding $52.3 million from exchanges. This trend aligns with a broader market shift toward accumulation rather than speculative trading.

The market is also watching for confirmation signals from Bitcoin's Net Unrealized Profit/Loss (NUPL) metric. The indicator currently sits near the 0.3 level, a historical threshold associated with market transitions. While holders are in moderate profit, the market remains far from the excess seen near previous cycle tops.

Institutional confidence in Bitcoin and Ethereum appears to be growing despite short-term volatility. BlackRock's aggressive accumulation across three consecutive days has injected $1.027 billion into the market. This level of buying is often seen when institutions expect price appreciation.

As the market stabilizes, investors will closely watch whether Bitcoin can reclaim the $94,000–$95,000 range or if it will continue to consolidate around $92,000. A break below this level could signal deeper corrections, while a sustained move above $94,000 would suggest renewed bullish momentum.