BlackRock’s IBIT Hits Record Trading Volumes Despite Historic Price Drop

TL;DR

• BlackRock’s Bitcoin ETF reached $10 billion in daily volume, surpassing its previous high by 25%.
• Despite a 13% drop in the fund’s price, institutional flows have managed to retain 90% of their assets under management.
• The massive volume, combined with Bitcoin’s subsequent rebound, suggests the formation of a local floor after a period of intense selling.

Amidst the extreme volatility of the February 5 session, BlackRock’s IBIT recorded record trading volumes by exceeding $10 billion in shares traded. Ironically, this achievement occurs during one of the fund’s most severe corrections, which plummeted as much as 18% while Bitcoin struggled to stay at $60,000.

Despite global fear, flow data reveals that Bitcoin ETFs only reported net outflows of $434 million—a small fraction compared to the total volume. Therefore, the fact that these investment vehicles maintain the vast majority of their assets suggests that long-term institutional confidence remains intact in the face of turbulence.

Bottom Signal or Dead Cat Bounce?

From a technical analysis perspective, such high-volume sessions are generally indicators of exhaustion or capitulation, which is fundamental for identifying local floors in financial markets. In this way, the solid double-digit rebound that Bitcoin has shown today seems to confirm that selling pressure reached a mathematical limit during IBIT’s peak activity.

However, analysts remain cautious and warn that it is still too early to declare the start of a new bull cycle, recalling that other volume peaks did not prevent subsequent declines. Therefore, monitoring weekly volume on platforms like Coinbase will be decisive in validating whether this movement is a structural recovery or simply a momentary relief before new lows.