TLDR
- BlackRock’s Bitcoin ETF (IBIT) trading volume reached its highest point since November 2024
- The fund experienced an 11% price drop last week, touching $46.07, a four-month low
- Over $1 billion was withdrawn from IBIT amid the selling pressure
- The ETF broke below its important $50.69 support level, suggesting possible further declines
- Despite recent outflows, IBIT remains the world’s largest ETF with $39.6 billion in assets
BlackRock’s spot Bitcoin ETF (IBIT) hit a three-month high in trading volume last week. This surge in activity happened as the fund’s price tumbled and investors pulled out substantial amounts of money.
The price of IBIT fell more than 11% during the week. Data from TradingView shows the ETF broke through an important price floor established back in January.
IBIT reached a low point of $46.07 by the end of the week. The fund hasn’t traded at this price level since early November 2024.
The sell-off brought with it massive trading activity. More than 331 million IBIT shares were traded on Nasdaq during this period.
Trading volume began to pick up last Tuesday. This coincided with IBIT breaking below the $50.69 support level that had previously held firm.
Market experts often look at volume as a way to confirm price trends. High volume during a price drop can suggest strong selling conviction among investors.
Market Movements
Fund flow data shows the impact of this selling pressure. According to Farside Investors, IBIT saw outflows exceeding $1 billion during the week.
The heavy withdrawals came as investors responded to falling prices. The decreasing CME futures basis also contributed to the negative sentiment.
The selling wasn’t limited to just BlackRock’s product. All eleven U.S.-listed Bitcoin ETFs reported outflows during the same period.
Even with these challenges, IBIT continues to lead the ETF market globally. The fund still manages $39.6 billion in assets, keeping its top position.
From a technical analysis perspective, IBIT’s outlook appears bearish. Analysts expect downward pressure to continue while prices remain under the $50.69 mark.
What was once a support level has now flipped to become resistance. Traders are now watching to see if IBIT can climb back above this key price point.
The recent market action is part of broader movements in the crypto space. Bitcoin prices have been volatile during this same timeframe.
Trading volume is often seen as a measure of market interest and conviction. The high volume in IBIT points to active portfolio adjustments by various investor types.
In the weeks ahead, market participants will pay close attention to IBIT’s performance. Many consider the fund a bellwether for broader Bitcoin market sentiment.
The technical breakdown below $50.69 may attract additional selling. Support levels from early November could be tested if the downward trend continues.
IBIT’s price movements often influence the broader cryptocurrency ETF market. Other funds typically follow similar patterns during major market shifts.
Institutional investors make up a large portion of IBIT’s holder base. Their trading decisions can have outsized impacts on both price and volume.
The recent price action follows several months of relative stability. IBIT had maintained a range above $50 since January before last week’s breakdown.
Market observers will be watching for signs of buying interest at current levels. Volume patterns in the coming days could provide clues about future price direction.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
