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BlackRock's Spot Bitcoin (BTC) ETF Trading Volume Reaches Its Highest Level Since November! What does it mean?
According to the data source TradingView, last week the spot price of BlackRock's Bitcoin (BTC) exchange-traded fund (ETF) dropped by over 11%, while volumes reached their highest level since mid-November.
BlackRock's Bitcoin ETF Records 3-Month Highest Trading Volume
On Nasdaq, more than 331 million shares of the ETF trading under the IBIT code changed hands as the fund's price fell below the January support level of $50.69 and ultimately dropped to the lowest level since the beginning of November at $46.07.
This could be a disappointing development for the bulls. One of the cardinal rules in the market for decades is that price movements must be verified by trading volume.
This means that when there is a significant increase in the number of shares or contracts traded on the stock exchange, a downward price movement will be considered to have occurred.
In addition, data from Farside Investors shows that investors withdrew more than $1 billion from the ETF as the decline in price decline and the CME futures base, which represents the return on carry trades, led to panic selling. Ten other U.S.-listed ETFs also lost money.
Still, IBIT remains the world's largest ETF with $39.6 billion in assets under management.
On Tuesday, trading volume increased as IBIT broke below the horizontal support of $50.69, signaling further losses. The technical outlook remains bearish while prices remain below the resistance that has turned into the old support.