## The Logic Behind BlackRock's Buying Spree: Wall Street Is Redefining the Crypto Game

In ten minutes, they absorbed 300 Bitcoins and 16,000 Ethereum from a certain exchange; over three days, they accumulated a total of 4,200 BTC and 83,000 ETH, investing nearly $600 million — BlackRock's move is not just simple buying; it’s systematically restructuring the entire market supply landscape.

### Institutional Giants Enter, Market Structure Changes

When asset management giant BlackRock launched Bitcoin ETFs and Ethereum ETFs, it faced an unavoidable issue: the number of investors buying ETF shares must correspondingly purchase the same amount of real assets in the spot market to support them. Currently, Bitcoin ETF assets have surpassed $110 billion, and Ethereum ETFs have reached $18 billion, meaning buying and buying has become a routine part of asset maintenance.

Latest data shows Bitcoin at $88.11K, up 1.16% in 24 hours; Ethereum at $2.95K, up 2.97% in 24 hours. At these prices, institutional buying power remains fierce.

### Spot Market Faces "Scarcity" Dilemma

More concerning is the rapid shrinking of exchange spot liquidity. Bitcoin holdings on exchanges have evaporated by 220,000 coins over the past six months, and Ethereum is similarly being gradually locked into institutional vaults. With Ethereum staking yields approaching 5% annually, plus the continuous token burn mechanism of EIP-1559, Ethereum’s attractiveness on Wall Street even surpasses traditional government bonds — even BlackRock’s own $3 billion tokenized fund has begun to treat ETH as a core allocation.

### Possible Extreme Market Trends in Q4

As spot supply is gradually locked up and demand continues to grow, the market will enter a logical cycle of "no supply, only price increase." After two rounds of institutional concentrated purchasing, Q4 is highly likely to see a supply-side squeeze leading to violent price surges.

Retail traders, who once relied on technical analysis and chip research to grasp trading logic, are finding it failing. BlackRock controls 10% of Ethereum globally; a simple adjustment of a position can cause irrational volatility in K-line charts. The era of large transfers on-chain shouting "dump" is over; those huge transfers are often just institutions fulfilling ETF settlement obligations.

### Clash Between Decentralization Ideals and Reality

What does all this mean? The original intention of decentralization is being ruthlessly crushed by reality. Protocol developers have already begun expressing concerns publicly: if institutions continue locking all Ethereum into staking systems, the governance structure of the protocol will eventually be drastically altered, and "decentralization" will become a bitter joke.

The crypto world has transformed from a playground for retail investors into a new hunting ground for Wall Street. The next two key signals are worth close attention:

**First Key Signal**: Once BlackRock’s Ethereum staking ETF receives regulatory approval, buying pressure will directly trigger a market explosion.

**Second Key Signal**: When Bitcoin Layer 2 infrastructure truly lands and starts generating yields, institutional accumulation of Bitcoin will enter a new高潮.

By then, the true power of this buying spree will be fully revealed.