BlackRock’s iShares Bitcoin Trust (IBIT) witnessed a record single-day outflow of $332.6 million on Thursday, raising questions about investor sentiment in the cryptocurrency market. This massive withdrawal comes after a stellar performance in 2024, where IBIT accumulated over $37 billion in inflows and contributed to Bitcoin’s surge to an all-time high above $108,000 in December.
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Thursday’s outflow marked the third consecutive day of withdrawals for IBIT, totaling nearly $393 million for the week. Despite this significant outflow, Bloomberg ETF analyst Eric Balchunas suggests this may not signal a bearish trend, viewing it as a natural correction after a period of substantial growth. Other Bitcoin ETFs, including Bitwise’s BITB and Fidelity’s FBTC, experienced minor inflows of $48 million and $36 million, respectively, on the first trading day of 2025. However, these inflows were insufficient to offset IBIT’s substantial outflows.
Ethereum ETFs also faced headwinds, with combined outflows of $77.5 million. While Bitcoin’s price currently hovers around $98,000, several analysts maintain a bullish outlook for 2025, projecting potential new all-time highs of $180,000 or more. They highlight the possibility of nation-state adoption as a crucial catalyst for Bitcoin’s price appreciation this year. This potential adoption, coupled with increasing institutional interest, could significantly impact the cryptocurrency market. The recent outflows from IBIT, while substantial, might represent a temporary adjustment rather than a fundamental shift in investor confidence. The long-term trajectory of Bitcoin and the broader cryptocurrency market remains a topic of intense speculation and debate among experts.
