BlackRock’s Bitcoin ETF Hits $10 Billion Daily Volume Record as Market Faces Historic Volatility

BlackRock’s spot Bitcoin exchange-traded fund IBIT shattered trading records Thursday, posting $10 billion in daily volume as Bitcoin experienced one of its most dramatic intraday collapses in recent memory. The cryptocurrency plummeted from $73,100 at market open to a session low near $62,400, marking a stunning 14.6% intraday decline that exposed the fragility beneath institutional adoption.

This extraordinary volume spike in IBIT represents more than just panic selling—it signals a fundamental shift in how institutional capital responds to Bitcoin volatility. The $10 billion figure dwarfs typical daily trading patterns for the fund and demonstrates that even sophisticated investors are not immune to the emotional triggers that have long characterized cryptocurrency markets. The volume surge occurred precisely when Bitcoin tested critical support levels, suggesting that large-scale institutional repositioning drove much of the activity.

The market carnage extended well beyond Thursday’s session. Bitcoin now trades at $60,767, down 16.62% over the past 24 hours and a staggering 28.15% over the past week. The cryptocurrency has shed nearly $270 billion in market capitalization during this period, falling from its dominant position above $1.5 trillion to its current $1.255 trillion valuation. This represents one of the most severe wealth destruction events in Bitcoin’s institutional era.

What makes this selloff particularly concerning is the reversal in institutional demand that previously provided Bitcoin’s price floor. ETF flows, which generated massive inflows throughout 2025, have turned decisively negative in 2026. This shift eliminates the steady buying pressure that supported Bitcoin during previous corrections and leaves the market vulnerable to forced liquidation cascades.

The cryptocurrency’s 57.29% market dominance remains elevated, but this metric masks the underlying weakness in investor confidence. When Bitcoin falls this sharply while maintaining high dominance, it typically indicates broad-based crypto market distress rather than rotation into alternative digital assets. The $145 billion in 24-hour trading volume across all Bitcoin markets suggests that institutional selling pressure extends far beyond BlackRock’s ETF.

Thursday’s price action reveals critical technical vulnerabilities that have been building for months. Bitcoin’s failure to hold the $65,000 level triggered algorithmic selling programs and margin calls across leveraged positions. The speed and magnitude of the decline caught many institutional risk management systems off guard, forcing rapid position adjustments that amplified the selling pressure.

The timing of BlackRock’s volume record coincides with broader macroeconomic pressures that have reduced appetite for risk assets. Rising interest rate expectations and uncertainty around Federal Reserve policy have created headwinds for all speculative investments, with Bitcoin bearing the brunt due to its correlation with technology stocks and growth assets.

Institutional investors who entered Bitcoin positions during the 2024-2025 rally face significant paper losses that are testing their commitment to the asset class. Many corporate treasury allocations made above $80,000 are now underwater, potentially triggering review processes that could lead to further selling if companies reassess their risk tolerance.

The ETF structure that was supposed to provide stability and institutional legitimacy has instead become a transmission mechanism for volatility. When institutional investors panic, the ETF format allows for immediate liquidation without the friction of direct cryptocurrency trading. This accessibility, while beneficial during e friction s, amplifies selling pressure during corrections.

Market makers and arbitrageurs who facilitate ETF trading experienced extreme stress during Thursday’s session. The gap between Bitcoin’s spot price and ETF net asset value widened significantly, creating opportunities for sophisticated traders while punishing retail investors who sold at disadvantageous prices.

Looking ahead, Bitcoin faces a critical juncture where institutional support structures are being tested. The cryptocurrency must demonstrate that it can function as a store of value during market stress, or risk losing the institutional credibility that drove its recent adoption. The fact that BlackRock’s ETF attracted record volume during a crash suggests that institutional interest remains, but the direction of that interest—buying or selling—will determine Bitcoin’s near-term trajectory.

The global crypto market’s $2.119 trillion total capitalization provides context for Bitcoin’s continued dominance, but also highlights the systemic risk when the leading cryptocurrency experiences such severe volatility. The interconnected nature of crypto markets means that Bitcoin’s weakness ripples through all digital assets, creating feedback loops that can accelerate both rises and declines.