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The truth behind BlackRock's massive cryptocurrency migration! First explanation of Web3 risks

Crypto & Blockchain: Xmas News, Risks, Regs & You

Cryptocurrency Information Bureau News Did you know that over $2 million worth of cryptocurrency moved around Christmas? We'll explain the behind-the-scenes of the market and the importance of security, as BlackRock moves Bitcoin and Ethereum. #Cryptocurrency #BlackRock #Web3Security

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👋 Do you find Web3 News difficult? Today, I'll explain it in a super easy-to-understand way.

⚠️ Note: This article is intended to provide technical information and is not investment advice. Crypto assets and Web3 technology involve risks. Please be sure to conduct your own research (DYOR).

🔰 Difficulty: Ultra Beginner

🎯 Target: People who are new to Web3 / People who are interested in technology trends

Christmas Move! Why BlackRock Moved Cryptocurrency

💡 Key points in 3 seconds

  • The news that the major corporation BlackRock transferred a large amount of Bitcoin and Ethereum to Coinbase over Christmas has become a hot topic.
  • We also explain other events that teach us about market changes and the importance of security.
  • The world of virtual currencies is full of risks! Understand the technology and deal with it wisely.

What was the problem in the first place?

Hello everyone. When you watch the news, the world of Web3 is full of technical terms, and it feels like a distant topic. Today, I will summarize the news from December 25th to 26th, 2025, and talk about the "Great Migration of Virtual Currencies." In particular,BlackRock, the world's largest asset managerHowever, the news of the large amount of Bitcoin and Ethereum being transferred on Christmas Eve is the most notable. However, this is not just a "transfer of money." There are hidden issues of market instability and security.

Imagine this. It's Christmas time, everyone is on holiday, and there are few people in stores in town. What would happen if a large amount of money suddenly moved in such a "thin market" (a state with little trading volume)? The price would fluctuate greatly. In the news, BlackRock2,292 Bitcoin and 9,976 Ethereum(TotalOver $2 billion) to an exchange called Coinbase. This is similar to transferring money from one bank account to another, but in the world of cryptocurrencies, everything is recorded on a public ledger called the blockchain, so anyone can see it.

Here lies the problem. The cryptocurrency market is still in its infancy, and trading volume is low during holidays, so even a small movement can cause the price to drop.Sudden fluctuationsIt's easy to do. In other news, the price of Bitcoin temporarily plummeted on an exchange called Binance, and a wallet app called Trust Wallet was hacked. All of these points to the issues of "security" and "stability" of virtual currencies. For example, hacking$ 700 millionIn the case of the theft of millions of dollars, a vulnerability in a browser extension was exploited. It's like locking your house only to find that the window is open.

Furthermore, there is also regulatory news from Hong Kong. The government is trying to impose strict rules on the trading and storage of virtual assets. This is like creating "traffic rules" in the world of virtual currencies, which tend to be left unchecked, and is intended to protect investors, but there is also the problem that if it is too strict, it will be difficult for new ideas to grow. Overall, virtual currencies are convenient, butPrice volatility, security gaps, and regulatory changesThis is a major challenge.

What's so great about this technology?


Web3 image

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▲ Image of the mechanism

Let's now take a look at the core of this news, namely the "technical key points," in an easy-to-understand way. First, the BlackRock transfer was an "on-chain transaction." It used the blockchain (a public transaction ledger that anyone can see) to send cryptocurrency from a BlackRock wallet to a Coinbase vault. Bitcoin uses a "proof-of-work" method, where miners compete to approve transactions through computational competition. Ethereum, on the other hand, uses a "proof-of-stake" system, where money is deposited to secure the network. This allows Ethereum to conserve energy and adds features like staking (depositing and receiving rewards).

What's impressive is that these moves by major corporations demonstrate the connection between traditional finance and cryptocurrency. Coinbase Prime is a service that safely stores large amounts of money, allowing users to trade without using public exchanges. It's like a bank safe deposit box. Meanwhile, Binance's flash crashes (sudden price drops) tend to occur in pairs with low trading volume, with large sell orders causing a chain reaction of falling prices. The Trust Wallet hack, a vulnerability in a browser extension, highlights the importance of protecting seed phrases (private keys to wallets). Finally, Hong Kong regulations mandate asset segregation (separating customer funds from company funds) and proof of reserves (proof of ownership), enhancing trust.

With this in mind, let's compare traditional finance with current cryptocurrency technology.

Item Traditional finance (banking, etc.) The current cryptocurrency technology
Transaction transparency Only visible inside the bank Anyone can verify it with the blockchain
Security Trusted and centralized Decentralized, but with hacking risk
Regulatory response Strict but slow New rules strengthen defenses like Hong Kong
Market Stability Relatively stable even on holidays Although it is subject to fluctuations due to holidays, it is highly transparent.

As shown in this table, the transparency of virtual currencies also entails risks.$86,400 to $88,100The total market size is2.95 trillion dollarsFear & Greed Index23 (Extreme Fear)This instability is the reason why the figures are so low.

How will your life change?

So how will this news affect our daily lives? Although cryptocurrencies are still a distant reality, they are gradually becoming more familiar to us. Let's consider three scenarios.

First, Scenario 1: Managing your money might become easier. For example, if large companies like BlackRock start dealing in virtual currencies, the day might come when you can buy Bitcoin using a regular banking app. It'll be as easy to transfer assets as sending money overseas on your smartphone. However, if you don't consider the risk of fluctuations when transferring, you could lose money.

Scenario 2: Increased security awareness. The TrustWallet hack, which targets browser extensions, is similar to the theft of passwords during everyday online shopping. This will likely encourage more people to use hardware wallets (offline secure wallets) and strengthen data protection in their daily lives.

Scenario 3: Rules are in place, making transactions safer. When governments tighten their defenses, as in Hong Kong's regulations, international transactions using cryptocurrencies become safer. For example, using stablecoins (cryptocurrencies with stable prices) instead of exchanging money when traveling abroad may reduce fees. However, stricter regulations can also lead to more complicated procedures and procedures.

These are just examples, but as virtual currencies become integrated into our daily lives, it becomes important to balance convenience and risk.

To see for yourself

Don't just believe the news, do your own research! The key is to check official websites and trusted sources. For example, you can check BlackRock's transfers using a blockchain explorer (such as Etherscan). DYOR (Do Your Own Research) means doing your own research. In the cryptocurrency world, where scams are common, it's important not to click on suspicious links or share your seed phrase with others. First, check market data on sites like CoinMarketCap. Stay safe and educate yourself.

What happens next?

In the future, we will likely see more institutional investors like BlackRock take action, and cryptocurrencies will become more integrated into traditional finance. As Hong Kong's regulations improve, Asia could become a safe hub. However, caution is advised: the risk of sudden price fluctuations and hacking will remain. Tighter regulations may slow innovation. Furthermore, incidents like the flash crash should serve as a catalyst for market maturation. Overall, while technology evolves, the key is to strike a balance between security and regulation. While taking a positive approach, don't forget the risks.

My Feelings, Then and Now

Today, I've provided an easy-to-understand explanation of market news, focusing on BlackRock's cryptocurrency transfer. While technological transparency is appealing, it also comes with risks. This article is for informational purposes only; investment decisions are at your own risk. Understanding Web3 will help you see the world more intelligently. Keep learning!

Author profile

👨‍💻 Author: SnowJon, Web3 and AI researcher

Based on the knowledge he gained from the University of Tokyo's Blockchain Innovation course, he provides easy-to-understand explanations of Web3 and AI technology, focusing on translating complex technologies into everyday life.
*This article was written with the assistance of AI, but the content was checked and final editing was done by the author.

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