BlackRock’s Bitcoin ETF, trading under the ticker IBIT, has achieved a significant milestone, reaching over $10 billion in trading volume on a turbulent Thursday. However, this high volume was primarily driven by a wave of selling rather than buying, occurring during a market downturn where Bitcoin’s value plummeted by about 20% within a week.
Recent data indicates that over $434 million flowed out of various US crypto funds on the same day, with BlackRock’s fund accounting for approximately 40% of these outflows, followed closely by Fidelity’s Bitcoin fund. An extensive analysis of the trading landscape reveals a frantic atmosphere, as reported by CoinShares analyst James Butterfill, who noted that crypto products experienced an all-time high trading volume of $18.5 billion on Thursday.
Amidst the turmoil, Bitcoin’s price fluctuated around $67,400, after briefly dipping below $60,000 on certain trading platforms early Friday morning. This price action has resulted in Bitcoin relinquishing all gains it had accumulated since the election of pro-crypto U.S. President Donald Trump in 2024. Ether also fell below the $2,000 mark, while other notable altcoins endured declines exceeding 20% over the past week.
Industry analysts suggest that the current downturn is influenced by a variety of factors that do not revolve around the catastrophic failure of a major centralized exchange or a depegging stablecoin. Instead, the market’s volatility appears to be tied to broader economic anxiety following the release of disappointing U.S. jobs data. Kaiko analyst Laurens Fraussen has speculated that the market might be reacting to overstretched tech equities with Bitcoin failing to meet expectations as a safe-haven asset, indicating its sensitivity to risk pricing in general.
Looking ahead, Fraussen forecasts Bitcoin will likely hover between the $60,000 to $70,000 range in the near term, albeit with a somewhat optimistic note that much of the intense selling pressure may have already played out.
