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Bitcoin: What BlackRock ETF’s $1B daily volume means for BTC

2min Read

The surge did not automatically trigger demand for BTC. But in the long run, the impact may change.

Bitcoin news relating to BlackRock's trading volume

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  • The surge in volume made IBIT one of the most sought-after ETFs in the U.S.
  • Bitcoin’s price crossed $44,000 and might climb further.

The 7th of February was a big day for BlackRock’s Bitcoin [BTC] ETF as the daily trading volume surpassed $1 billion.

According to Bloomberg Intelligence analyst James Seyffart, IBIT, which is the ticker of the ETF had much more volume than its counterparts including Bitwise, and Fidelity among others.

Outsiders want all of Bitcoin’s exposure

The increase suggests that interest in Bitcoin ETFs has continued to improve since the launch. But concerning price action, the surge is not much of a big deal.

This was because the rise in volume is not proof that the demand for Bitcoin has outweighed supply which seemed to be the most important metric to watch out for.

Despite the lack of effect on Bitcoin’s price, BlackRock seemed to be leading in adoption among all Bitcoin ETFs. This was evident in IBIT’s position out of all the ETFs issued in the U.S.

On the 6th of February,  Eric Balcuhnas posted that IBIT had had more inflows than 99.98% of the U.S.-issued ETFs. Balcuhnas is another senior analyst at Bloomberg.

Therefore, AMBCrypto can confirm that BlackRock was well in the lead out of all the approved Bitcoin ETFs. In other developments, Bitcoin’s price tapped $44,000 on the same day IBIT’s volume hit $1 billion.

BTC climbs, might do more

Press time data revealed that BTC has continued to move higher changing hands at $44,665. This jump represents a 3.96% increase in the last 24 hours.

However, signals from the technical outlook revealed that the price might go higher. One reason for this projection could be linked to the position of the Exponential Moving Average (EMA).

As of this writing, the 50 EMA (blue) had crossed over the 200 EMA (yellow) on the daily chart. Also, Bitcoin’s price had broken above both levels.

Should this position stay the same, BTC might rise possibly above $50,000. However, the projection might coincide with a post-halving rally.

That is not to say Bitcoin would not increase past the $44,000 region pre-halving. For instance, the Accumulation/Distribution (A/D) indicator showed that the accumulation of the coin has been intense over the last few days.

If distribution does not take over, Bitcoin’s price might surpass $47,000 in the short term.

The daily Bitcoin chart showing the coin's possible increase to $50,000

Source: TradingView

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Furthermore, indications from the Money Flow Index (MFI) supported the projection. At press time, the MFI reading had increased to 76.24. The jump suggests an increase in capital flow which could foreshadow a price increase.

If liquidity continues to flow into the ETFs as well as the Bitcoin spot market, then a climb to $47,000 is one significant level where the coin might hit next.


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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