Recent Bitcoin transfers linked to BlackRock have fueled concerns about large-scale selling, but the firm’s holdings have declined from roughly 823,000 BTC at their peak to about 779,000 BTC, a reduction of around 5%.

While some investors view the outflows as the start of a broader distribution phase, others note that similar selling periods in the past were followed by renewed accumulation.

The key question for markets is whether institutional selling will intensify or whether recent weakness has largely exhausted near-term selling pressure.

The S&P 500 rose 1% in the first…