Bitcoin plunges, but BlackRock ETF shines with record volumes of $10 billion

Bitcoin is going through a turbulent period. After flirting with historic highs, it is dangerously approaching the $60,000 threshold, a symbolic barrier that worries investors. While the cryptocurrency market is destabilizing, a glimmer of hope appears: BlackRock’s Bitcoin ETF, recording record volumes of $10 billion in one day, proves that it remains a solid product even in the storm.

Bitcoin falls, but BlackRock ETF resists with a record volume

The crypto market is collapsing. Bitcoin recently dropped 13%, a decline that shook the entire crypto sphere. The BTC price fell from over $70,000 to an alarming level below $65,000 in a single day, leaving crypto traders in a spiral of massive liquidations.

This situation is reminiscent of the worst periods of volatility in Bitcoin’s history, but paradoxically, one investment product is managing to stand out.

BlackRock’s Bitcoin ETF, iShares Bitcoin Trust (IBIT), recorded a daily volume record of $10 billion in transactions, an impressive figure for a fund that tracks the Bitcoin spot price. This product continues to shine in the dark, attracting strong institutional demand even when the market is bearish.

As explained by Eric Balchunas, analyst at Bloomberg:

$IBIT just smashed its daily volume record with $10 billion traded, despite a 13% drop in its price, the second largest since its launch. That’s brutal!

This ETF thus becomes one of the safest products for institutional investors seeking exposure to Bitcoin without the risks associated with holding digital assets directly. In uncertain times, IBIT remains a safe haven, offering major financial players a way to enter or exit the crypto market more controlled and secure.

Fear and capitulation of crypto investors: A worrying trend

Despite the brightness of BlackRock’s ETF, the crypto market as a whole is gripped by extreme fear. Signs of capitulation are evident: an increase in redemptions and a strong concentration of put options signal a bearish trend marked by the loss of investor confidence.

Although the IBIT ETF recorded a volume record, it also suffered capital outflows in a climate of generalized panic.

According to some analysts, the market is hit by intense selling pressure. Lack of buyer support and multiplying liquidations announce a possible continuation of the Bitcoin decline.

Veteran analyst Peter Brandt points out that current signs in the crypto market indicate intense selling pressure. He explains that the lack of buyer support and accumulation of liquidations are clear indicators that the decline could last longer than expected.

Redemptions on IBIT have reached $175 million, representing a strong liquidity outflow in the crypto market, and it doesn’t seem ready to stop. This panic dynamic among crypto investors shows that the market is now in a phase where fear predominates over optimism, an indicator that we could be close to the end of a bullish cycle.

Bitcoin: crypto market between correction and new growth?

After BTC’s brutal fall, some analysts speak of a correction down to $38,000, while others see in this drop a necessary adjustment before a possible recovery. The crypto market works in cycles, and Bitcoin has always experienced correction phases after steep rises. The current drop could therefore be just a pause before a new climb.

However, macroeconomic factors play a central role, notably inflation and high interest rates, which directly influence crypto investors’ decisions.

Meanwhile, BlackRock’s ETF continues to play its role as a stable tool for institutional investors. Despite the turbulence, the ETF allows exposure to Bitcoin without the risks related to exchange volatility. With $56 billion under management, the ETF represents a significant market share and remains a valuable asset for institutions seeking to minimize risks.

But the cryptocurrency market could still go through a difficult period before signs of recovery appear.

Key figures to remember about the current crypto market

• Current Bitcoin price (BTC): $66,993;
• Record trading volume of BlackRock ETF: $10 billion in one day;
• Bitcoin drop: 13% in one day, reaching the lowest levels in several months;
• Redemptions on IBIT: $175 million, illustrating massive sales in the crypto market;
• Volume of put options on IBIT: increase in puts, signaling fear and capitulation.

The carnage on the crypto market is now very real, and the extreme fear spreading is understandable in such a volatile environment. Signs of capitulation are clear, and investors are caught in a spiral of fear. However, products like BlackRock’s ETF offer opportunities for stability in a sea of turbulence.