IBIT Crashes 48% as Bitcoin Bloodbath Deepens

Traders reacted to a Bitcoin market crash, which brought BlackRock’s iShares Bitcoin Trust (IBIT) to its highest trading volume day. The market experienced increased volatility after Bitcoin dropped 12% within 24 hours, which resulted in IBIT becoming one of the most actively traded exchange-traded funds throughout global financial markets.

The daily trading record of IBIT became invalid when $10 billion worth of shares exchanged hands during a single trading day, according to Bloomberg ETF analyst Eric Balchunas. The surge shows three types of trading activities that people who experienced the market crash used to change their investment positions.

The ETF experienced its second-largest daily price drop since its introduction after IBIT lost 13% of its value. The ETF experienced its most extreme decline on May 8, 2024, when it lost 15% of its value. The price movements demonstrate that iShares Bitcoin Trust maintains a strong connection with Bitcoin prices, which leaves investors vulnerable to cryptocurrency price fluctuations.

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IBIT Faces Heavy Outflows as Bitcoin Slides

Recent months have shown a decline in investor sentiment. The market experienced a net outflow of $373.4 million on Wednesday and IBIT has only achieved 10 days of net inflows during 2026. iShares Bitcoin Trust has experienced difficulties in attracting capital since the crypto market crash that occurred in early October.

Bitcoin’s price recently fell to approximately $64,000 after reaching a temporary value of $60,300. Bitcoin has decreased in value by approximately 50% since its early October peak of about $126,000, according to CoinGecko. The ETF follows the same pattern as iShares Bitcoin Trust. The ETF has declined approximately 48% since reaching almost $70 in early October and now trades at about $36.10.

Bob Elliott, who serves as chief investment officer for Unlimited Funds, explained that iShares Bitcoin Trust investments have currently lost value according to their average dollar invested. The statement demonstrates that retail and institutional investors bought assets at elevated prices and now face financial losses.

IBIT and Bitcoin: Analysts Warn of More Downside

The overall market downturn results from three factors, which include weak U.S. employment data, increasing financial restrictions, and market apprehensions about substantial investments in artificial intelligence, creating a shortage of trading resources for risk assets such as cryptocurrency.

Peter Brandt, who has extensive trading experience, thinks that the market decline has not yet reached its conclusion. He identified “campaign selling” activities, which show that major investors are selling their assets while the market lacks sufficient buying interest.

The current iShares Bitcoin Trust system operates as a continuous assessment mechanism that measures Bitcoin usage by institutions through its high market value and its ability to experience significant price fluctuations.

Also Read: Bitcoin Prints Second-Largest Capitulation Spike in 2 Years