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U.S. Bitcoin ETF trading volume hit a new record on Friday in a session that was described as highly volatile but within normal market swings.
This performance coincided with significant price fluctuations in Bitcoin, which once fell to around $80,000 before rebounding to around $5,000.
Eric Balchunas, chief ETF analyst at Bloomberg, said total trading volume reached $11.5 billion, which represents a revolution in fund activity given the growth.
He explained that ETFs are a mechanism to ease the pressure of liquidation during periods of decline.
IBIT, the largest fund on the market, still accounts for the largest share of trading volume at about $8 billion, despite outflows of $122 million, and has posted positive net inflows only once in the past eight trading days.
Despite a weak weekly performance for these funds, with exits exceeding $1.2 billion, Friday alone saw positive inflows of $238 million.
In terms of price, these moves came amid intense selling pressure, causing Bitcoin to fall from $95,000 to $81,000 in a matter of days.
Prices later rose to around $85,000 after a statement from the New York Fed chairman hinted that a rate cut could be imminent.
Despite the rebound, the currency is still down more than 30% from its all-time high reached in early October, raising questions about the market’s overall direction given the negative trends currently controlling the market.
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