Traders were active in BlackRock’s iShares Bitcoin Trust ETF on Thursday as Bitcoin plummeted, falling 12% in the last 24 hours. The iShares Bitcoin Trust ETF (IBIT) has seen an all-time peak daily trading volume, with $10 billion worth of shares changing hands. This surge in trading activity is a direct response to Bitcoin’s rapidly declining price, highlighting the ETF’s ability to draw attention even in turbulent times.

Bloomberg ETF analyst Eric Balchunas noted that IBIT experienced a significant drop of 13% on the same day, marking its second-worst daily price decline since launch. The ETF's most significant drop occurred on May 8, 2024, when it fell by 15%. This volatility is indicative of the broader market sentiment, as traders react to Bitcoin's struggles.

As Bitcoin continues to decline, hitting a low of $60,300 before recovering slightly to $64,000, the crypto market is facing unprecedented challenges. Bitcoin has now fallen approximately 50% since its all-time high of around $126,000 in early October. The iShares Bitcoin Trust ETF has mirrored this decline, dropping around 48% from its peak of nearly $70 to settle at $36.10.

In recent days, IBIT has seen net outflows totaling $373.4 million, with only ten trading days of net inflows recorded in 2026. This trend reflects the ongoing difficulties the ETF faces in attracting consistent investment, particularly following the crypto market’s crash earlier this month.

Bob Elliott, the investment chief at Unlimited Funds, pointed out that the average dollar invested in IBIT is now underwater, further complicating the ETF's outlook. As the market grapples with weak US job data and growing concerns over capital allocation to the artificial intelligence sector, traders remain cautious.

Veteran trader Peter Brandt has raised concerns that the carnage might not be over, suggesting that Bitcoin shows signs of significant selling pressure. With few buyers stepping in to support the price, the market seems to be in a precarious position, leaving investors anxious about potential further declines.

In summary, BlackRock’s iShares Bitcoin Trust ETF has reached a daily volume record amid a significant downturn in Bitcoin’s price. The market’s current state reflects a blend of uncertainty and cautious trading, as investors navigate these turbulent waters. As the situation evolves, all eyes will be on Bitcoin and the broader crypto market to see how they respond in the coming days.