Bitcoin and ether ended the week lower after U.S. PCE inflation data was released, influencing market corrections and portfolio adjustments by institutions like BlackRock.
This downturn highlights digital assetsโ sensitivity to U.S. economic indicators, leading to significant institutional sell-offs and reduced ETF inflows, impacting market dynamics.
BlackRockโs $980 Million Sell-Off Impact
Bitcoin and Ethereum ended the week significantly lower, driven by U.S. inflation data releases. These drops were also influenced by institutional actions, marking a notable shift in market sentiment. Large exits by funds like BlackRock contributed to these adjustments.
One of the major players involved is BlackRock, executing a nearly $980 million sell-off, adding pressure to the market. Jerome Powellโs caution about potential changes in monetary policy further fueled these concerns, affecting broader risk asset sentiment.
BlackRock, one of the worldโs largest asset managers, reportedly executed a $980 million sell-off on September 23, 2025, accelerating profit-taking and triggering broader institutional selling.
$1.6 Billion Worth of Leveraged Positions Liquidated
The financial impact included over $1.6 billion in BTC and ETH leveraged positions being liquidated. The decrease in Bitcoin ETF inflows and the selling trend among institutions present challenges for future liquidity stability and asset volatility.
These events have the potential to cause regulatory scrutiny and technological advancements in risk management. Based on historical data, experts predict similar movements if inflation and monetary policy concerns persist, emphasizing increased market volatility.
Bitcoinโs Role as a Volatility Proxy Examined
Similar market contractions have occurred following major inflation surprises, as seen in the June 2022 CPI print. This historical pattern shows that Bitcoin and Ethereum have consistently reacted to macroeconomic cues, highlighting their role as volatility proxies.
Analyzing data from earlier instances, Kanalcoin experts indicate that market corrections can trigger broader institutional sell-offs. This pattern underscores the importance of understanding historical trends to anticipate future outcomes, with volatile reactions expected if similar conditions arise.
Arthur Azizov, Founder, B2 Ventures, observed: โBitcoinโs dip below $109,000 indicated an โoverheated marketโ and confirmed active profit realization by institutions.โ
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