BlackRock Bitcoin ETF trading surpasses $10 billion, extreme selling may be nearing the end

February 6 News, the trading volume of the spot Bitcoin ETF IBIT under the world’s largest asset management company BlackRock experienced a historic surge. According to Nasdaq data, the fund traded 284 million shares in a single day, with a market value exceeding $10 billion, representing a 169% increase from the previous high set in November last year, and setting a new record since its listing.

The extreme volume was accompanied by a sharp price decline. IBIT fell about 13% on that day, breaking below $35, reaching the lowest level since October 2024, with a year-to-date decline of 27%. In early October last year, the fund had touched a high of $71.82.

In terms of capital flow, SoSoValue data shows that IBIT experienced approximately $175 million in redemptions in a single day, accounting for over 40% of the net outflow of $434 million across 11 similar funds, making it the main source of capital outflow that day. As a mainstream compliant product holding physical Bitcoin and tracking spot prices, IBIT has long been an important channel for institutional entry into the digital asset market.

Market experts point out that such a large-scale transaction coupled with a simultaneous plunge often indicates a “capitulation sell-off.” Long-term holders, under pressure, choose to cut losses and exit, with emotional selling concentrated, which usually occurs in the later stages of a bear market.

The options market also signals strong defensive sentiment. According to MarketChameleon data, long-term put options for IBIT have significantly increased, with premiums used to hedge downside risk exceeding those of call options by over 25 volatility points, reflecting high caution among investors regarding short-term trends.

Meanwhile, Bitcoin’s price temporarily dropped near $60,000, intensifying concerns about market liquidity and risk tolerance. Although historical experience suggests that extreme panic often occurs near cyclical lows, the duration of the bear market remains uncertain. For investors paying attention to Bitcoin ETF capital flows, market sentiment shifts, and institutional behavior, this abnormal movement of IBIT may serve as an important reference signal for identifying market turning points.