Altcoins

Bitcoin ETFs Break Records Amid Market Turbulence

U.S. spot Bitcoin ETFs hit record trading volumes amid BTC's price volatility, showcasing the dynamic nature of the market.

By Matthew Davis3 min readNov 22, 20256 views
Share

Bitcoin ETFs Achieve Record-High Trading Volumes

On Friday, the spot Bitcoin ETFs in the United States shattered previous trading volume records, an occurrence deemed "wild yet typical" by market analysts.

This surge in activity coincided with significant fluctuations in Bitcoin's price, which saw a dramatic plunge toward the $80,000 mark, followed by a swift recovery of nearly $5,000.

Record-Breaking ETF Volume

Eric Balchunas, a senior ETF analyst at Bloomberg, characterized the trading activity surrounding the spot Bitcoin ETF as an "eruption," with a staggering total of $11.5 billion traded. Balchunas remarked that this volatility is "wild but also normal," providing insight into the dynamics at play and suggesting that ETFs serve as critical liquidation release valves in such scenarios.

As expected, the largest Bitcoin ETF was responsible for the bulk of this trading activity, with a remarkable $8 billion contributing to the total volume. The IBIT ETF has been enduring a challenging period, recently experiencing $122 million in net outflows. Notably, it has recorded positive performance on only one occasion out of its last eight trading days.

In contrast, the overall performance of Bitcoin ETFs for the day was optimistic, witnessing an influx of $238.4 million in new investments. However, the week concluded with a significant downturn, reflecting over $1.2 billion in net outflows, as reported by FarSide data.

Bitcoin Price Overview

The recent withdrawals from the ETFs have contributed to the ongoing decline in Bitcoin's price. Just last week, Bitcoin started at $95,000, but within a few days, it plummeted nearly $15,000, dipping below $81,000 on Friday.

Following comments from New York Fed President John Williams, who suggested a possible reduction in interest rates soon, Bitcoin rebounded to approximately $85,000. Nevertheless, the cryptocurrency has experienced a significant decline of around 32% since reaching its all-time high in early October, raising concerns about the current market conditions and whether bearish sentiment has taken over.

The post Bitcoin ETFs Break Records Amid Market Turbulence appeared first on CryptoPotato.

Tags:

#Crypto News#Top News#Bitcoin (BTC) Price#Bitcoin ETF

Related Posts