BlackRock Bitcoin ETF Hits $10B Volume Record as Market Freefalls
On February 5, 2026, the cryptocurrency market saw a rare split between trading activity and value. Bitcoin (BTC) dropped...
Quick overview
- On February 5, 2026, Bitcoin's price fell to nearly $60,000, marking a 50% drop since October 2025.
- BlackRock's iShares Bitcoin Trust (IBIT) recorded a trading volume of $10 billion, its highest since launch, despite a 13% drop in share price.
- Investors are increasingly cautious due to macroeconomic factors and concerns over AI spending, leading to significant net outflows from IBIT.
- The overall cryptocurrency market cap has decreased from $3 trillion to $2.4 trillion, indicating ongoing challenges for recovery.
On February 5, 2026, the cryptocurrency market saw a rare split between trading activity and value. Bitcoin (BTC) dropped close to $60,000, losing almost half its value since October 2025. Meanwhile, BlackRock’s iShares Bitcoin Trust (IBIT) set a new daily trading record with $10 billion in volume.
This record trading volume shows just how volatile the market has become. Institutions are using these funds both to exit and to enter positions as the market goes through a major deleveraging.
IBIT Shatters Records Amid 13% Price Crash
According to Bloomberg Intelligence analyst Eric Balchunas, the $10 billion in trades marks IBIT’s largest single-day volume since its launch. Most of this activity was driven by heavy selling and investors rapidly shifting their positions.
- IBIT shares fell 13% that day, closing at around $36.10.
- Analysts at Unlimited Funds noted that most investments in IBIT are now “underwater,” as the ETF has fallen about 48% from its $70 high in late 2025.
- Net Outflows: Despite the high trading volume, the fund saw net outflows of $373.4 million earlier in the week, showing that investors are less interested in holding long-term.
https://www.nasdaq.com/market-activity/etf/ibit/
Key Performance Metrics: February 5, 2026
| Metric | Value |
| IBIT Trading Volume | $10 Billion |
| IBIT Daily Change | -13% |
| Bitcoin Spot Price | $65,882 (Intraday Low: $60,300) |
| Drop from 2025 Peak | ~50% (from $126,000) |
Why is Bitcoin Crashing?
The current slump is driven by a mix of macroeconomic and technical factors. Experienced traders, such as Peter Brandt, say there are signs of large-scale selling, with little buying support to stop the decline.
🚨 LATEST: According to Bloomberg’s Eric Balchunas, BlackRock’s Bitcoin ETF ($IBIT) just clocked a record $10 billion in daily trading volume. This surge occurred alongside a 13% price drop, marking its second-deepest decline since its debut. pic.twitter.com/vXApno7w2N
— Coindaily News 🗞 (@coindaily_news) February 6, 2026
Primary Market Catalysts:
- Macroeconomic Shifts: Weak U.S. job numbers have made investors more cautious, causing them to pull back from risky assets around the world.
- The AI Overhang: Investors are increasingly worried about the large spending in Artificial Intelligence (AI), which is causing them to move money out of speculative assets like crypto and back into traditional tech stocks.
- Leverage Liquidations: Reports indicate that some large hedge funds, especially in Hong Kong, may have faced leveraged options liquidations in IBIT, which forced them to sell off large amounts to manage margin risk.
Strategy (MSTR) Reports $12.4B Loss
The losses go beyond ETFs and have affected corporate treasuries as well. Strategy, the top Bitcoin treasury company, reported a $12.4 billion net loss for the fourth quarter of 2025.
This loss is directly tied to a 22% drop in Bitcoin’s price during that time. The company holds 713,502 BTC, and the recent fall below their average cost basis of $76,052 has put their “digital fortress” under close watch.
“Our financial setup is stronger than ever. We have $2.25 billion in cash, covering 30 months of obligations,” said CFO Andrew Kang, encouraging investors to stay calm even though the stock fell 17% to $107.
Outlook: Rotation or Capitulation?
Although Assets Under Management (AUM) are shrinking across ETFs, which points to tough deleveraging, the record volume in IBIT shows that liquidity is still strong. Market analysts think we are seeing a strategic rotation, with capital being quickly reallocated as the market seeks a new bottom.ds a new floor.
However, since Bitcoin is having trouble getting back to $70,000 and the total crypto market cap has dropped from $3 trillion to $2.4 trillion in just over a month, recovery will be challenging.
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