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Debashree Patra
Debashree Patra
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- Jan 08, 2025 08:36 UTC
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BlackRock’s Bitcoin ETF Inflows Hit $978M Despite Massive Crypto Market Crash
Bitcoin price fell sharply, driven by strong U.S. economic data and increased investor caution.
BlackRock's iShares Bitcoin ETF saw massive inflows, attracting $597 million despite the market downturn, while other ETFs experienced outflows.
BlackRock's aggressive purchases signal strong institutional confidence in Bitcoin's long-term potential.
Bitcoin is facing a downturn, now trading around $96,259 after a 5% drop. The leading cryptocurrency is under pressure from strong U.S. economic data, which has cooled investor sentiment. Bitcoin’s 24-hour low reached $96,132, with a high of $102,022. Its trading volume also fell by 23%, showing a cautious market. This trend has affected major altcoins too, with losses ranging from 5% to 10%.
Meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) saw drops of 8% and 10%, respectively. Overall, the global crypto market has dropped by 16%, now valued at $3.38 trillion.
Keep reading to see how this unfolds.
BlackRock’s IBIT Defies Market Trends
Despite Bitcoin’s decline, BlackRock’s iShares Bitcoin ETF (IBIT) is making headlines by attracting a significant $597 million inflow, even as the broader market struggles. This marks the third straight net inflow for spot Bitcoin ETFs, showing strong institutional confidence amid market challenges.
On January 7, BlackRock’s IBIT bought 6,078 BTC, worth $208.7 million—more than the amount of new BTC mined that day. The ETF’s $597 million inflow has been a crucial boost for the crypto market, which has seen cautious investor behavior due to strong U.S. economic data. In total, Bitcoin spot ETFs saw almost $978 million in inflows, with BlackRock leading the way.
Challenges for Other Bitcoin ETFs
While BlackRock’s ETF is thriving, other Bitcoin ETFs have seen significant outflows. Fidelity’s FBTC, Bitwise’s BITB, and Ark Invest’s ARKB together saw over $400 million in outflows. Grayscale’s GBTC also recorded a $125.45 million outflow, highlighting the difference between BlackRock’s success and the struggles of its competitors.
Impact of the U.S. Economic Data
Bitcoin is facing added pressure from stronger-than-expected U.S. economic data. More job openings and better-than-expected numbers from the service sector have strengthened the U.S. dollar, making it harder for Bitcoin to gain traction. Additionally, higher Treasury yields have made traditional investments more attractive, drawing attention away from crypto.
The U.S. dollar index (DXY) remains strong above 108.50, while the 10-year Treasury yield hit a 35-week high of 4.68%, worsening Bitcoin’s downtrend.
A Silver Lining?
BlackRock’s aggressive Bitcoin purchases, even during a market downturn, signal unwavering confidence in the long-term potential of digital assets. As the iShares Bitcoin ETF continues to attract substantial inflows, it could set the stage for renewed optimism in the crypto space, especially as investors navigate macroeconomic challenges.
As the dust settles, all eyes are on institutional players and economic trends to see where Bitcoin heads next.
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FAQs
Strong U.S. economic data, a strong dollar, and higher Treasury yields have shifted investor focus to traditional assets, pressuring Bitcoin.
Major altcoins like Dogecoin and Shiba Inu fell 8–10%, reflecting the broader market downturn as the global crypto market dropped 16%.
Strong job data, rising Treasury yields, and a robust U.S. dollar index make traditional investments more attractive, pulling demand from Bitcoin.
Yes 
No 
