BlackRock Buys the Bitcoin Dip Amid Trump’s Tariff Shock as Ethereum Faces Massive Sell-Off

As global markets reeled from President Donald Trump’s surprise decision to impose 100% tariffs on Chinese imports, one institutional giant saw opportunity where others saw panic. Investment powerhouse BlackRock made a decisive move—buying $74.2 million worth of Bitcoin while prices were tumbling and the crypto market turned deep red.

Source: X

BlackRock Stands Alone Amid Market Panic

According to recent ETF flow data, BlackRock’s Bitcoin fund was the only U.S. spot BTC ETF to record inflows on that turbulent day. While most funds saw heavy redemptions, BlackRock quietly increased its exposure. In total, U.S. spot Bitcoin ETFs reported $4.5 million in net outflows, breaking a two-week streak of steady inflows.

“You see a -7% red candle. They see an opportunity,” one market analyst noted, underscoring how institutional investors often buy when fear grips the market.

This strategy reflects a broader institutional mindset—accumulate assets when others are selling, a playbook that has historically paid off for long-term holders.

Ethereum ETFs See $175 Million in Outflows

While Bitcoin found institutional buyers, Ethereum faced the opposite trend. On the same day, Ethereum spot ETFs saw a staggering $175 million in net outflows, with all nine listed funds recording zero inflows.

BlackRock’s own ETHA fund led the withdrawals, shedding $80.19 million as institutional investors scaled back exposure during the sharp downturn. The move highlights a clear divergence: many large players trimmed risk in Ethereum while rotating into Bitcoin, which is increasingly viewed as the more stable asset during periods of macroeconomic uncertainty.

Trump’s Tariff Shock Triggers Record Crypto Sell-Off

The dramatic ETF flows unfolded against the backdrop of one of the largest crypto sell-offs in history, sparked by Trump’s announcement on November 1. The decision to hit China with full-scale tariffs came shortly after Beijing imposed export restrictions on rare earth minerals, escalating tensions between the world’s two biggest economies.

The market reaction was swift and brutal:

• Bitcoin fell 7.75% to around $112,542, with trading volumes surging 145% to $183.88 billion.

• Ethereum plunged more than 11% to $3,878.

• Over $19 billion in leveraged positions were liquidated in just 24 hours—the largest single-day wipeout in crypto history.

• The total crypto market cap crashed from $4.3 trillion to $3.75 trillion, erasing hundreds of billions in value almost overnight.

Institutions Stay Strategic While Retail Traders Panic

The sell-off once again revealed the contrasting behavior between retail and institutional investors. As news of the tariffs broke, retail traders rushed to sell, triggering cascading liquidations across exchanges.

Institutional players, however, took a more calculated approach. Many trimmed Ethereum holdings, shifted capital into Bitcoin, and executed large trades efficiently through ETFs—demonstrating a level of discipline retail traders often lack during high-volatility events.

What’s Next for Bitcoin?

Analysts are now closely watching Bitcoin’s $100,000 support level. Sustained institutional buying could stabilize the market and restore confidence. However, if prices fall decisively below that mark, it could signal a prolonged downturn.

For now, BlackRock’s bold move stands out as a reminder that in crypto—fear for some is opportunity for others.