Bitcoin Plummets to $60K, But BlackRock’s ETF Shines with Record $10B Volume in 2026

• Why Did Bitcoin Crash Below $65K?
• How Did BlackRock’s ETF Hit $10B Volume Amid the Chaos?
• Is This a Correction or the Start of a Bear Market?
• Key Crypto Market Stats to Watch
• Q&A: Your Burning Questions Answered

In a wild twist for crypto markets, bitcoin (BTC) nosedived 13% in a single day, flirting dangerously with the $60K psychological threshold—yet BlackRock’s iShares Bitcoin Trust (IBIT) defied the chaos by racking up a jaw-dropping $10 billion in daily trading volume. This ETF’s resilience amid the storm highlights institutional appetite for regulated crypto exposure, even as retail investors panic. Below, we dissect the crash, analyze IBIT’s outlier performance, and explore whether this is a market correction or the start of a deeper downturn.

Why Did Bitcoin Crash Below $65K?

Bitcoin’s freefall from $70K to under $65K on February 7, 2026, triggered a domino effect: over $175 million fled crypto ETFs, liquidations spiked, and put options surged as fear gripped traders. The BTCC research team notes this mirrors past capitulation phases, where panic-selling precedes potential bottoms. "The lack of buyer support and macro pressures—like sticky inflation—are key drivers," says a BTCC analyst. Data from TradingView shows BTC’s RSI at oversold levels, hinting at either a rebound or further pain ahead.

How Did BlackRock’s ETF Hit $10B Volume Amid the Chaos?

While Bitcoin bled, IBIT became the unlikely hero. Its $10 billion volume milestone—up 40% from prior peaks—signals institutional players doubling down. "This isn’t just ‘safe haven’ demand; it’s a structural shift," argues Eric Balchunas of Bloomberg. Unlike direct BTC holdings, IBIT offers easier entry/exit for Wall Street whales, evidenced by its $56B assets under management (CoinMarketCap data). Still, $175M in redemptions show even this fortress isn’t immune to crypto’s volatility.

Is This a Correction or the Start of a Bear Market?

History offers clues: BTC often corrects 20-30% after bull runs. Some analysts (like veteran Peter Brandt) warn of a drop to $38K if sell pressure persists. Others see a healthy flush of leverage before renewed upside. The wild card? Macroeconomics. With the Fed holding rates high, crypto’s ‘risk-on’ appeal weakens—yet IBIT’s traction suggests institutions are playing the long game. "This ETF is the bridge between traditional finance and crypto’s future," notes a BTCC report.

Key Crypto Market Stats to Watch

• BTC Price: $66,993 (-13% daily)
• IBIT Volume: $10B (record)
• Redemptions: $175M (highest since launch)
• Put/Call Ratio: 1.8 (extreme fear)

Q&A: Your Burning Questions Answered

What caused Bitcoin’s sudden drop?

A perfect storm: profit-taking after BTC’s rally, macro uncertainty, and cascading liquidations. The BTCC team points to $1.2B in Leveraged positions wiped out on derivatives exchanges.

Will BlackRock’s ETF keep outperforming?

Likely. Its regulated structure and liquidity make it a go-to for institutions, even in downturns. But as the $175M outflows show, no product is bulletproof.

Should I buy the dip?

This article does not constitute investment advice. That said, historically, BTC’s steepest corrections often precede rallies—if you can stomach the volatility.