BlackRock Bitcoin ETF Drops 11%: What’s Next?
BlackRock Bitcoin ETF– Last week, BlackRock’s spot Bitcoin exchange-traded fund (ETF) experienced a significant drop, with prices falling over 11%. This sharp decline, accompanied by high trading volumes, marked the ETF’s worst performance since mid-November, according to TradingView data.
The ETF, which trades under the ticker IBIT on Nasdaq, saw more than 331 million shares change hands. As the price fell below the key January support level of $50.69, it continued to slide to $46.07, marking its lowest point since early November. This price action has been disappointing for bullish investors, as a general market rule dictates that price movements must be validated by corresponding trading volume. The combination of bearish price action and higher trading volume often suggests that the downtrend has further room to run.
Investor Panic and Withdrawals
As the ETF price continued to decline, more than $1 billion was withdrawn by investors, as highlighted by Farside Investors. This mass exodus of capital, paired with a weakening CME futures basis, led to panic selling. Other U.S.-listed ETFs also suffered losses, contributing to a broader sense of unease in the market.
Despite the recent downturn, IBIT remains the largest Bitcoin ETF globally, with $39.6 billion in assets under management. Trading volume increased significantly last Tuesday when the ETF price fell below the $50.69 support level, signaling that more losses could be on the horizon.
Technical Outlook and Bearish Sentiment
The technical outlook for BlackRock’s Bitcoin ETF remains bearish. With prices consistently holding below the former support-turned-resistance at $50.69, the market sentiment suggests further downside potential. For now, the ETF’s prospects appear uncertain as it continues to face downward pressure in the volatile crypto market.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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