Bitcoin price continues its downward spiral, falling to yearly lows as BlackRock’s iShares Bitcoin Trust (IBIT) records its largest single-day outflow since its inception in 2024. Investor sentiment has taken a brutal hit with over $420 million exiting the fund in just 24 hours.
BlackRock’s ETF Bleeds Millions as Bitcoin Price Sinks Further
Bitcoin (BTC) price plunged to a low of $82,455 on Feb. 26, marking a 25% market correction since its all-time high in Dec. 2024.
According to ETF Store President Nate Geraci, Bitcoin ETFs experienced record-breaking outflows, with a staggering $1 billion exiting on Feb. 26. He described the situation as a “shorter-term blip,” but uncertainty remains.
BlackRock’s IBIT alone lost 5,000 BTC ($420 million), marking its worst single-day outflow since launching in 2024. The previous record was set on Jan. 2, when it shed $332 million.
ETF data provider CoinGlass reports that cumulative outflows from Bitcoin ETFs reached $756 million on Feb. 26, with Fidelity Wise Origin Bitcoin Fund (FBTC) also seeing a $145.7 million withdrawal.
Other issuers, including Bitwise, Ark 21Shares, Invesco, Franklin, WisdomTree, and Grayscale, all registered outflows between $10 million and $60 million.
At the same time, Grayscale has been moving large amounts of Bitcoin. Blockchain data shows that around 3,458 BTC—worth over $290 million—was transferred to Coinbase Prime deposit addresses within the last 20 hours.
The largest single transaction involved 700 BTC ($59.93 million), raising speculation that further selling pressure is coming.
The sell-off follows a record-breaking $1.1 billion ETF exodus on Feb. 24, extending the ongoing seven-day losing streak for institutional Bitcoin products.
Over $3 billion has now flowed out of Bitcoin ETFs within this period, a sharp reversal from their strong inflows earlier in 2024.
Bitcoin Futures Gap Sparks Fear of Further Decline
According to Rekt Capital, a trader and analyst on X, Bitcoin is on the verge of filling a CME futures gap between $78,000 and $80,700, a level last seen in Nov. 2024. This price gap suggests further downside risk before any meaningful rebound.
However, an upside CME gap remains between $92,700 and $94,000, indicating a possible recovery in the long term. If history repeats, Bitcoin may eventually fill both gaps, first hitting lower levels before attempting to reclaim previous support zones.
Meanwhile, liquidity in the $80,000 region remains weak, with fewer bid orders compared to a strong sell wall near $90,000, according to CoinGlass data. This imbalance suggests that Bitcoin could still face downward pressure before stabilizing.
Experts Say Panic Selling Is a ‘Noob Mistake’
CryptoQuant CEO Ki Young Ju dismissed concerns of a prolonged downturn, pointing out that Bitcoin has historically corrected by 30% in bull markets. He noted that in 2021, BTC fell 53% before recovering to new highs.
Meanwhile, BitMEX co-founder Arthur Hayes predicts further drops to $70,000, attributing the ETF exodus to hedge funds unwinding their arbitrage trades rather than long-term investors dumping Bitcoin.
With Trump threatening trade tariffs and macroeconomic uncertainty weighing on risk assets, Bitcoin traders remain cautious. While technical indicators suggest BTC could drop further, the market’s long-term trajectory remains in focus as investors brace for the next move.
