Bitcoin News Today: Bitcoin drops 2.05% amid BlackRock and Ark 21Shares institutional selling waves

Bitcoin’s price recently dropped 2.05% to $113,912, testing key support near $113.6K, as major institutional players like BlackRock and Ark 21Shares reportedly offloaded significant portions of their holdings. BlackRock’s $548 million BTC exit and Ark 21Shares’ $64.4 million sell-off of 559.85 BTC signaled intensified profit-taking from institutional investors, particularly amid Bitcoin’s proximity to record highs [1].

Technical indicators suggest a complex market environment. The bearish MACD at -444.13 and a positive histogram of 745.74 point to potential momentum building toward a bullish crossover, despite the current bearish trend [1]. The RSI at 42.15 indicates near-oversold conditions, potentially setting the stage for a short-term bounce. Meanwhile, Bitcoin trades below the 20-day and 50-day EMAs but holds above the 100-day and 200-day EMAs, suggesting that while short-term bearishness is present, longer-term support levels remain intact [1].

Market context reveals that the broader crypto market is reacting to these institutional moves with heightened sensitivity. Liquidations totaling $360 million occurred as Bitcoin fell below $116K, amplifying systemic selling pressure across leveraged positions [1]. The 2025 BTC price trajectory has seen a 39% rise from August lows, and the current pullback appears to be a natural correction rather than a fundamental breakdown. Institutional selling has also caused a slight dip in Bitcoin’s market dominance to 58.25%, with altcoins seeing a marginal increase in relative strength [1].

Despite the selling pressure, Bitcoin’s fundamentals remain robust. The cryptocurrency maintains a market cap of $2.27 trillion, with trading volume at $65.54 billion and a volume-to-market cap ratio of 2.9%, indicating measured and strategic distribution rather than panic selling [1]. The circulating supply of 19.9 million BTC—close to the maximum 21 million—further supports Bitcoin’s long-term scarcity-driven value proposition.

Social metrics reflect a mixed sentiment landscape. LunarCrush data shows a decline in social performance, with the AltRank dropping to 515 and the Galaxy Score at 47. While engagement levels have decreased, the positive sentiment remains at 77%, with increasing attention on institutional selling activities [1]. Social discussions are largely centered on BlackRock’s massive sell-off and Ark 21Shares’ strategic reallocations, echoing past institutional moves that historically led to sharp corrections [1].

Notably, some prominent traders and analysts remain bullish, despite the short-term volatility. Anthony Scaramucci maintains year-end targets between $180K–$200K, while others observe whale accumulation of $52 million daily and large long positions, signaling potential buying opportunities. This contrasts with the immediate distribution pressures, suggesting that while short-term selling is occurring, long-term confidence in Bitcoin’s price trajectory remains [1].

Looking ahead, ChatGPT’s Bitcoin analysis outlines three potential scenarios over the next three months. A successful defense of the $113.6K support level could lead to a recovery toward $118K–$122K, representing a 4–7% upside. If institutional selling continues, Bitcoin may consolidate between $110K–$118K, allowing technical indicators to reset. A deeper correction below $113.6K could push prices toward $110.4K–$103K, representing a 3–10% downside, with recovery dependent on completing key support levels and distribution phases [1].

The current price action underscores a critical juncture where institutional selling pressure meets technical oversold conditions. Bitcoin’s ability to defend the $113.6K level will be pivotal in determining whether this pullback is a temporary bounce or the start of a deeper correction. As major funds continue to reallocate positions, the market will closely watch whether this distribution phase leads to stabilization or further downward movement before the next institutional buying wave [1].

Source: [1] ChatGPT’s Bitcoin Analysis: BlackRock’s $548M Exit Tests $113K – Bounce or Breakdown? (https://cryptonews.com/news/chatgpt-bitcoin-analysis-blackrock-548m-tests-113k/)