Bitcoin Price Plummets as BlackRock Dumps 2.196 BTC Ahead of FOMC Meeting – What’s Next?

• Frequently Asked Questions

Bitcoin’s price took a sudden nosedive as BlackRock offloaded 2.196 BTC on Coinbase just hours before the critical FOMC meeting. This move has sent shockwaves through the crypto market, raising questions about institutional sentiment and the Fed’s upcoming rate decision. In this article, we’ll break down the implications of BlackRock’s sell-off, analyze historical precedents, and explore whether this is a short-term blip or the start of a deeper correction. Buckle up—it’s going to be a volatile ride. --- ### Why Did BlackRock’s BTC Dump Trigger a Market Slide? BlackRock’s sudden sale of 2.196 BTC might seem small, but it’s the *timing* that’s spooking traders. The transaction occurred just before the FOMC’s rate decision—a period when markets are hyper-sensitive to institutional moves. Historically, even minor sell-offs by major players like BlackRock can amplify volatility, especially when liquidity is thin. Data from [CoinMarketCap](https://coinmarketcap.com) shows Bitcoin’s price dropped 3.2% within an hour of the news, with altcoins following suit. Analysts at BTCC suggest this could be a tactical repositioning rather than a loss of confidence: *“Institutions often rebalance portfolios ahead of macro events. Don’t read too much into a single transaction.”* --- ### How Does the FOMC Meeting Impact Crypto? The Federal Open Market Committee (FOMC) meeting is a make-or-break event for risk assets like Bitcoin. With inflation still above the Fed’s 2% target, traders are split on whether the central bank will: 1. Hold rates steady (bullish for crypto), or 2. Signal delayed rate cuts (bearish). A [TradingView chart](https://www.tradingview.com) of BTC/USD reveals a clear correlation between Fed decisions and Bitcoin’s price action. For example, in March 2023, BTC rallied 20% after the Fed paused hikes. This time, however, the market seems less optimistic. --- ### Is This a Buying Opportunity or a Warning Sign? For long-term holders, dips like this are often a chance to accumulate. But the short-term outlook is murky: - Technical indicators : The BTC/USD pair is testing key support at $60,000. A break below could trigger stop-losses. - On-chain data : Glassnode reports reduced exchange inflows, suggesting hodlers aren’t panicking—yet. *Pro tip:* Keep an eye on Coinbase’s order book. If bid walls reappear near $60K, it’s a sign whales are stepping in. --- ### FAQ: Your Burning Questions Answered

Frequently Asked Questions

Why did BlackRock sell BTC before FOMC?

Institutions often rebalance portfolios ahead of high-impact events. This sale could be routine profit-taking or hedging against potential Fed-driven volatility.

Will Bitcoin recover after the FOMC decision?

Historically, BTC rebounds post-FOMC if the Fed’s tone is dovish. However, hawkish signals might extend the downturn.

How much BTC does BlackRock still hold?

As of 2025-12-11, BlackRock’s exact holdings are undisclosed, but their iBTC ETF remains a major market mover.