Is BlackRock Bitcoin ETF (IBIT) Biggest Outflow Early Signs Of Bitcoin Price Crash?

BlackRock’s iShares Bitcoin ETF (IBIT) recorded its largest-ever $188.7 million in outflow on Tuesday, raising concerns among investors. Also, US-based spot Bitcoin ETFs saw consecutive outflows for the fourth day as Fidelity’s FBTC and Ark Invest’s ARKB continued weak performance amid holidays. Bitcoin ETFs have now recorded over $1.5 billion in outflow in the last 4 days. Are these signs of an upcoming market crash, let’s see.

BlackRock Bitcoin ETF Records Largest-Ever Outflow

The crypto market showed signs of recovery as Bitcoin, Ethereum and other altcoins rebounded over the last 24 hours. Bitcoin price recovered from $94K to $99K today likely as traders FOMO Santa Claus rally. BTC currently holds above $98K, but a change in sentiment in this market can trigger sudden profit booking.

The promising factors for the change in sentiment could come from BlackRock Bitcoin ETF, which recorded its largest-ever outflow since launch on Tuesday, as per Farside Investors data on December 25. iShares Bitcoin ETF (IBIT) witnessed $188.7 million in outflow, almost double its previous largest outflow of $72.7 million last Friday.

The total outflow from US spot Bitcoin ETFs was $338.4 million, the fourth consecutive outflow. Fidelity’s FBTC saw $83.2 million and Ark 21Shares’ ARKB recorded $75 million in outflows. The flows for other crypto exchange-traded funds were negligible.

This has sparked slight concerns among traders as the year-end crypto options expiry looms. While analysts and investors are primarily bullish, the recent prediction by experts including BitMEX co-founder Arthur Hayes about a potential crypto market crash near Donald Trump’s inauguration day and Bitcoin following M2 money supply sparked sell-offs.

However, crypto firms such as MicroStrategy, Metaplanet, Matador Technologies, and others buy the Bitcoin price dip. In fact, MicroStrategy’s Michael Saylor announced a special shareholder meeting to vote on a proposal for its 21/21 Bitcoin plan. Saylor plans to issue more shares to buy more bitcoins.

What’s Next for Bitcoin Price?

BlackRock Bitcoin ETF’s largest-ever outflow and consecutive outflows from spot Bitcoin ETFs made investors to think about their next move. At present, Coinglass data indicates mixed reactions from spot and derivatives markets.

Crypto analyst Skew revealed that the current passive ask liquidity is around $100K given quoting and previous LTF high, which is an important price area. Besides, ask liquidity and spot supply is around $105K. He believes flows and volatility will be a key factor here.

“Dynamic use of taker & limit bid for acquiring BTC here, likely a strategic play by some large market entity that expects higher prices into year end & early Q1.”

BTC price jumped 5% in the past 24 hours, with the price currently trading at $98,014. The 24-hour low and high are $93,744 and $99,404, respectively. Furthermore, the trading volume has decreased by 24% in the last 24 hours, indicating low trading activity amid Christmas.

Traders must keep an eye on volume and sentiment in the market for cues on direction in upcoming days, with BlackRock Bitcoin ETF also a major factor. Notably, 147 BTC options with $14.40 billion in notional value to expire on Deribit this Friday. The max pain price is $84,000 and put-call ratio is 0.68.