Bitcoin’s 50% Drawdown Sparks $6.2B Outflows from iShares Bitcoin Trust
Bitcoin dropped below its November 2024 low after a $2.7 billion liquidation flush and macro shocks triggered sustained U.S. spot selling, driving about $6.2 billion in net ETF outflows since November. BlackRock’s iShares Bitcoin Trust saw over $10 billion in last-week volume as redemptions deepened spot selling.
1. Steep Liquidation and Price Decline
The recent sell-off triggered more than $2.7 billion in liquidations, marking Bitcoin’s largest drawdown since 2022 and pushing prices below November 2024 levels, erasing all post-election gains from last October.
2. ETF Outflows and Redemption Spiral
Spot Bitcoin ETFs recorded approximately $6.2 billion in net outflows since November, while iShares Bitcoin Trust saw over $10 billion in trading volume last week; redemptions forced additional spot selling and widened the discount to net asset value.
3. Outlook and Recovery Signals
Unrealized losses near $25 billion in digital asset treasuries and unstable basis rates have dampened institutional demand, with sustained upside now depending on renewed ETF inflows, stabilization of trading premiums, and a rebound in spot buying.