BlackRock’s Bitcoin ETF Sees 11% Drop Amid High Trading Volume

BlackRock’s spot Bitcoin ETF (IBIT) saw an 11% decline last week, hitting its lowest price since early November. Trading volume surged, with over 331 million shares exchanged on Nasdaq, marking the highest activity since mid-November. The price dropped below its key support level of $50.69, eventually bottoming at $46.07.

The sell-off intensified as investors pulled more than $1 billion from IBIT, according to Farside Investors. The falling CME futures basis, which tracks the profitability of carry trades, contributed to panic selling. Other U.S.-listed Bitcoin ETFs also experienced significant outflows.

Despite the decline, IBIT remains the world's largest Bitcoin ETF, managing $39.6 billion in assets. However, technical indicators suggest a bearish trend, as IBIT now struggles below its former support level, which has turned into resistance.

Market analysts note that high trading volume often validates price trends, reinforcing the bearish outlook. The ETF's sharp decline and increased selling pressure indicate that further downside risks remain. Traders and investors are closely watching for potential stabilization or continued losses in the coming weeks.