BlackRock IBIT Shatters Volume Records With $10B Trading Day as Bitcoin Plunges

BlackRock’s iShares Bitcoin Trust ETF delivered a stunning display of institutional trading intensity Thursday, recording an unprecedented $10 billion in daily volume as Bitcoin crashed through critical support levels. The extraordinary trading activity underscores the profound shift in how institutional capital responds to cryptocurrency volatility in the ETF era.

The volume surge came as Bitcoin tumbled to $65,683, marking an 8.81% decline in 24 hours and a devastating 21.84% drop over the past week. This price action erased substantial gains accumulated since the crypto-friendly policy expectations following Trump’s election victory, with Bitcoin now trading at levels last seen in early November 2024.

The $10 billion IBIT volume represents a watershed moment for cryptocurrency market structure. Traditional equity markets rarely witness such concentrated trading activity in a single security, yet BlackRock’s Bitcoin ETF achieved this milestone during peak market stress. This phenomenon reveals the ETF’s role as the primary institutional gateway for Bitcoin exposure, concentrating massive capital flows into a single tradeable instrument.

The trading intensity reflects a fundamental transformation in Bitcoin’s investor base. Where previous bear markets were characterized by retail capitulation, the current environment showcases institutional-scale repositioning through ETF vehicles. The volume spike indicates both aggressive selling from institutions looking to reduce exposure and opportunistic buying from those viewing the decline as an entry point.

Market dynamics reveal a critical inflection point. Bitcoin’s market dominance sits at 58.38%, maintaining its leadership position even as the total cryptocurrency market cap contracts to $2.24 trillion. This dominance suggests that while institutional flows are concentrating in Bitcoin through ETF vehicles, the broader altcoin ecosystem faces more severe capital flight.

The exceptional IBIT volume occurred against a backdrop of broader institutional selling pressure. ETF flows have reversed dramatically from the steady buying that characterized 2024 and early 2025. The shift from consistent inflows to the current environment of net selling represents a complete reversal in institutional sentiment, with IBIT serving as the primary vehicle for this repositioning.

Technical indicators paint a concerning picture. Bitcoin’s Relative Strength Index has dropped to oversold levels around 30, similar to conditions seen during the 2022 bear market bottom. However, historical precedent suggests that such oversold conditions can persist longer than expected, with potential for further downside before any sustained recovery materializes.

The $10 billion trading day also highlights the ETF’s market-making infrastructure under extreme stress. The ability to process such massive volume without significant tracking errors demonstrates the robustness of the underlying market structure that BlackRock has built around IBIT. This capacity proves crucial during periods of high volatility when institutional investors need immediate liquidity for large-scale position adjustments.

Global macroeconomic pressures are amplifying the selling intensity. The combination of technology stock weakness, concerns over AI investment sustainability, and broader risk-off sentiment has created a perfect storm for cryptocurrency assets. Bitcoin’s increasing correlation with equity markets means it no longer serves as the uncorrelated asset many institutions originally sought.

The volume record comes at a time when corporate Bitcoin treasuries face mounting pressure. Companies holding significant Bitcoin positions must now navigate mark-to-market losses that impact financial reporting, potentially triggering risk management protocols that mandate further selling. This dynamic creates a feedback loop where institutional selling begets more institutional selling.

Looking ahead, the IBIT volume surge establishes a new benchmark for cryptocurrency market liquidity during stress periods. The ETF structure has proven capable of handling extreme institutional demand while maintaining orderly trading conditions. This infrastructure capability positions Bitcoin for potential rapid recovery when institutional sentiment reverses, as the same mechanisms facilitating massive selling can accommodate equally large buying flows.

The current environment represents a maturation of cryptocurrency markets, where institutional-scale flows through ETF vehicles now dominate price discovery. While the immediate outlook remains challenging given persistent selling pressure, the infrastructure demonstrated by IBIT’s record volume day provides the foundation for eventual market stabilization and recovery.