BlackRock’s IBIT Hits $10B Volume as Bitcoin Plunges, Heavy Outflows and Oversold Signals
BlackRock’s spot Bitcoin ETF iShares Bitcoin Trust (IBIT) recorded roughly $10 billion in single-day trading volume as Bitcoin plunged about 9–13% intraday to roughly $60,000–$65,500, marking roughly a 48% decline from its early-October peak near $126,000. Bloomberg analyst Eric Balchunas said the volume spike accompanied intense selling; IBIT fell about 13% that session — its second-largest daily drop since launch — and posted $373.4 million in net outflows the prior day. Technical indicators showed BTC deeply oversold (RSI ≈ 20) with bearish momentum and the 20-day EMA near $80,500; key support levels noted near $62,900 and $60,000. Traders and market commentators pointed to weak US jobs data and capital rotation into AI stocks as macro drivers. MicroStrategy’s CEO said the company will not buy below its $76,000 average and warned of debt-service risks if BTC declines further. Analysts note that IBIT’s record volume increases liquidity but amplifies volatility; institutional flow patterns and Federal Reserve policy are likely to determine near-term direction. This report is informational and not investment advice.
Bearish
The combined reporting shows a sharp, sustained price decline in BTC accompanied by record ETF trading volume and sizeable net outflows from IBIT — conditions that are typically bearish for price in the near term. Heavy intraday selling and the ETF’s large outflows indicate liquidation pressure and reduced immediate buyer support. Technicals (RSI ≈ 20, price well below 20-day EMA) point to oversold conditions but not necessarily an imminent reversal; oversold readings can persist during strong downtrends. Macro drivers cited (weak US jobs data, rotation into AI stocks) reduce risk appetite and can prolong selling. Institutional behavior matters: IBIT’s high volume improves liquidity but also enables faster large trades; MicroStrategy’s refusal to buy below its $76k average removes a potential institutional bid at lower levels and highlights corporate balance-sheet risk. In sum, expect elevated volatility and downside risk short-term. Over the medium term, market direction will hinge on whether institutional inflows resume and on Fed policy; absent a clear shift in flows or macro outlook, downside bias remains.