Crypto Market Volatility Looms as BlackRock Moves $600M in BTC and ETH Ahead of Inflation Data

The crypto market could see volatility in the coming sessions. This isafter BlackRock moved $600 million in Bitcoin and Ethereum to Coinbase Prime. The transfers occurred hours before the release of the PCE data, which could also spark market volatility. 

BlackRock Transfers Stir Crypto Market 

According to Arkham Intelligence data, BlackRock deposited 3,970 BTC and 82,813 ETH to Coinbase Prime, totaling about $600 million. This move hints at a potential sell-off from the world’s largest asset manager.

This move follows the outflows that BlackRock’s Bitcoin and Ethereum ETFs saw on January 21. SoSoValue data shows that BlackRock’s IBIT fund recorded a net outflow of $357 million, while its Ethereum fund recorded a net outflow of $250 million. Meanwhile, the Bitcoin and Ethereum ETFs as a group saw net outflows of $708 million and $297 million, respectively. 

BlackRock’s BTC and ETH deposits come ahead of the key PCE inflation data, which drops today. This is another event that could spark significant volatility for the crypto market. The PCE is notably the Fed’s preferred inflation gauge and comes just ahead of the FOMC meeting next week. Economists expect core PCE to rise 0.2% month-over-month and 2.8% year-over-year.

GDP and Jobless Claims Data Drop

The U.S. Q3 revised GDP and initial jobless claims data, which dropped earlier today, signaled that the U.S. economy is strong, reducing expectations of rate cuts this year. The GDP data came in at 4.4%, above expectations of 4.3%. Meanwhile, the jobless claims came in at 200,000, above expectations of 209,000.

This immediately impacted the crypto market as Bitcoin dropped below $90,000. It is worth noting that Japan’s rate decision is another macro development to watch. The Bank of Japan (BOJ) is expected to hold interest rates steady, which is a positive for the market following the December rate hike.

The crypto market stabilized yesterday after a sharp rebound in the stock markets. Bitcoin price recovered to trade at around $89,500 today after U.S. President Donald Trump withdrew planned tariffs on some European nations. The move followed NATO discussions and eased concerns about trade tensions.

Source: TradingView

Trump said the U.S stock market will double during his Davos speech. U.S. equities rebounded after earlier losses and dipped again hours after. This recovery helped lift digital assets alongside risk sentiment.

With BlackRock transfers, ETF outflows, and dense macro data ahead, traders now face multiple volatility triggers. This happens as inflation data, labor signals, and global rate decisions approach. The alignment of institutional flows and macro events keeps the crypto market firmly in focus.