BlackRock’s IBIT Sets Record Volume as Bitcoin Slides Sharply

BlackRock’s iShares Bitcoin Trust (IBIT) posted a record trading volume of around $10 billion on Thursday, 5 February 2026, amid a sharp downturn in the price of Bitcoin a clear indication of intense investor activity and repositioning under market stress.

According to Bloomberg ETF analyst Eric Balchunas, IBIT “crushed its daily volume record”, with $10 billion worth of shares traded as Bitcoin fell nearly 12% in a single day to around $64,000, after briefly dipping to $60,300. IBIT itself declined by 13%, marking its second-largest one-day drop since its launch.

This surge in trading came just one day after IBIT experienced $373.4 million in net outflows on Wednesday. The fund has only recorded 10 net-inflow days in all of 2026, reflecting ongoing selling pressure and profit-taking by institutional participants.

Bitcoin’s decline is part of a broader retreat in risk assets, attributed to weaker US employment data, rising macroeconomic uncertainty, and concerns over AI sector capital concentration. Traders also pointed to signs of “campaign selling” and reduced dip-buying interest, as flagged by veteran analyst Peter Brandt.

Importantly, IBIT’s high-volume session shows that spot Bitcoin ETFs are now playing a central role in price discovery and market liquidity. While this institutional infrastructure offers new access and depth, it also means that sharp outflows or sentiment shifts can dramatically amplify volatility.

For Bitcoin investors, the episode reinforces the importance of long-term conviction and awareness of how ETF flows now shape short-term market dynamics.