Bitcoin stands above the $115,000 mark, but institutions are "dumping" at the peak? BlackRock CEO Fink warns retail investors of risks!

Despite a big dump in the crypto market on Friday, October 10, the price of Bitcoin rebounded strongly to the $115,000 level. However, on Monday, October 13, the US Spot Bitcoin ETF recorded a net outflow of up to $326 million, marking the largest single-day capital flight since the big dump, suggesting that institutions are taking profits from the price rise. Meanwhile, Larry Fink, CEO of BlackRock, urged retail investors to remain cautious about investing in crypto assets during an interview on Sunday. While he acknowledged that crypto assets have a "substitute" role similar to gold, he emphasized that they should not make up a large portion of investment portfolios, bringing cautious sentiment to the market.

Institutional "Reverse Operation": Bitcoin ETF Encounters $326 Million Large Outflow

After the liquidation wave in the crypto market on October 10, Bitcoin price quickly rebounded, but the fund flow of the Spot Bitcoin ETF sent a completely different signal. According to data from Farside Investors, the net outflow of the U.S. Spot Bitcoin ETF surged to an astonishing $326 million on Monday, October 13, setting the largest single-day outflow record after the market crash.

Almost all U.S. Spot ETFs experienced net outflows, with the only exception being BlackRock iShares Bitcoin Trust (IBIT). IBIT recorded a net inflow of 522 Bitcoins on the day, worth approximately $60.3 million. The fund's daily trading volume reached $47 billion, highlighting that BlackRock's products continue to attract strong institutional interest.

Although Bitcoin ETF performed strongly in early October, with net inflows exceeding $50 billion in the first week, the volatility of the crypto market struck again. After U.S. President Trump announced a 100% tariff on Chinese goods, capital inflows began to slow down and eventually turned negative. This indicates that some institutional investors may choose to take profits (Profit-Booking) during the market rebound to lock in gains or avoid macro uncertainties.

Bitcoin price under pressure: whales shorting and $11 ten thousand support level test

Against the backdrop of significant outflows from Spot ETF and cautious market sentiment, Bitcoin's price has pulled back. Currently, Bitcoin (BTC) is trading at around $112,636, with a decline of 1.6%, and daily trading volume down 23% to $71.47 billion.

Market sentiment is cautious

As Bitcoin (BTC) attempts to challenge the $120,000 mark, investors are choosing to take profits, intensifying the selling pressure. On-chain data shows that a whale account known as the "Trump Insider whale" has increased its short positions, further exacerbating market skepticism.

Senior crypto analyst Altcoin Sherpa warns that under ongoing selling pressure, Bitcoin (BTC) prices may find key support at $110,000 before determining the next move. Furthermore, this retracement pressure has also spread to the broader crypto market, with on-chain data showing that crypto whales have recently been shorting mainstream altcoins like XRP, DOGE, and PEPE.

BlackRock CEO Fink Issues Cautious Warning to Retail Investors

Larry Fink, the CEO of BlackRock, expressed a cautious support for cryptocurrency investments during an interview with CBS last Sunday, but emphasized the risks for retail investors.

Fink reflected on his comments in October 2017 when he described Bitcoin as the "money laundering index," clarifying, "I did say at that time that Bitcoin was the domain of money launderers and thieves." However, he later added, "But the market will teach you that you must constantly reassess your assumptions. Crypto Assets do play a role similar to gold, in that it is an alternative."

Despite the softened view, Fink still urges retail investors to stay vigilant. He suggests: "For those looking for diversification, it (Crypto Assets) is not a bad asset, but I don't think it should be a major component of your portfolio."

BlackRock has tasted success with its IBIT fund, which has seen its assets under management (AUM) soar to $940 billion since its launch in January 2024, demonstrating the asset management giant's significant influence in the crypto assets space. Fink's remarks not only affirm the value of crypto assets as an alternative asset but also cool the "frenzy" among retail investors.

Conclusion

Bitcoin (Bitcoin) has shown its resilience with a rapid recovery after the big dump, but the significant outflow of funds from Spot ETFs indicates that institutional investors are clearly taking profits at the current high levels. This stands in stark contrast to the market's expectations of an "institutional bull," and the market may face pullback pressure in the short term. BlackRock CEO Fink's cautious remarks have undoubtedly sounded the alarm for retail investors who are overly enthusiastic. Under the dual effect of global macro uncertainty and changes in market structure, the next direction of Bitcoin (BTC) will depend on the stability of the $110,000 key support level and whether institutional funds can resume net inflows.

Note: This article is for informational purposes only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions with caution.