Key Points
- The BlackRock Bitcoin ETF (IBIT) recorded its highest trading volume on 5th August, despite a market downturn.
- Bitcoin’s price struggled despite a spike in trading volumes, falling to as low as $49,360.
The cryptocurrency market, including Bitcoin [BTC], underwent a significant downturn recently, leading to a sharp decline on 5th August.
However, the Blackrock Bitcoin ETF (IBIT) recorded one of its highest daily trading volumes on the same day, presenting an intriguing contrast.
Blackrock Logs Record Volume
Data from Coinglass showed a remarkable surge in volume activity for the BlackRock Bitcoin ETF (IBIT).
The ETF’s trading volume began with $1.5 billion early in the day, closing at nearly $3 billion.
This surge in trading volume suggests that while the general cryptocurrency market was declining, many investors were actively engaged with the BlackRock Bitcoin ETF.
Investors’ behaviors could range from viewing the downturn as a buying opportunity to selling their holdings to minimize losses amidst falling prices.
The exceptional volume in the ETF could also indicate a broader shift in investor sentiment or strategy.
Bitcoin Struggles Despite ETF Volume Spike
Despite a spike in trading volumes for the BlackRock Bitcoin ETF, BTC faced significant price struggles.
BTC’s price experienced a sharp fall, falling to as low as $49,360 and closing at approximately $54,274.
This decline pushed Bitcoin’s Relative Strength Index (RSI) further into the oversold territory.
Currently, Bitcoin shows signs of a modest recovery, trading at over $56,000 with an over 3% increase.
Analysis of the Bitcoin volume showed that it experienced a spike of its own.
Data from Santiment revealed a significant surge, with volumes reaching over $104 billion on 5th August.
This marked the first occasion in more than five months that it surpassed the $100 billion threshold.
