TLDR:
- Bitcoin ETFs recorded a $8.9B drawdown from ATH, the largest since their January 2024 launch.
- BlackRock’s IBIT lost over 42,000 BTC from peak, signaling intense institutional sell pressure.
- Loss-driven BTC exchange inflows fell from 90K to 19K in days, hinting at capitulation end.
- BTC trades at $68,116, up 5% weekly, with the $60K-$67K zone holding as key support.
Bitcoin spot ETFs have recorded their steepest drawdown since their January 2024 launch.
More than $8.9 billion in value has exited the market during the recent correction. The average realized price for ETF holders sits near $79,000, according to on-chain data.
Bitcoin is now trading well below that threshold, putting significant pressure on investors.
Bitcoin ETF Outflows Hit Record Territory as Pressure Mounts
The drawdown reflects how hard the correction has hit ETF investors.
On-chain analytics account Darkfost shared data showing the average ETF cost basis at approximately $79,000. With Bitcoin dipping below $70,000, that gap has been painful for holders. The estimated net drawdown from the all-time high in invested dollar value reached roughly negative $8.9 billion.
Bitcoin ETFs experienced largest Drawdown since launch
Holders of spot Bitcoin ETFs, which reflect the demand from their investors, are currently under pressure compared with the average realized price, estimated at around $79,000.
— Darkfost (@Darkfost_Coc) March 4, 2026
BlackRock’s iShares Bitcoin Trust took the biggest hit.
IBIT saw more than 42,000 BTC leave the fund from its peak holdings of over 806,000 BTC. That represents a notable reduction in institutional positioning. The selling pressure from IBIT alone signals how broadly the correction was felt.
The data does carry some nuance. Darkfost noted the metric cannot perfectly capture internal investor movements within ETFs. Still, it serves as a reasonable proxy for overall cost basis and demand shifts. It helps frame just how deep the pullback went in dollar terms.
There are signs the worst may be behind the market. The drawdown figure has since recovered to around negative $7.8 billion from the all-time high. That marks a partial improvement from the bottom.
A sustained pickup in ETF demand would help Bitcoin establish a firmer foundation.
Loss-Driven Exchange Inflows Slow as BTC Stabilizes Near Key Demand Zone
Alongside the ETF data, exchange flow patterns showed signs of stress earlier in the correction.
Bitfinex data highlighted that around February 5 and 6, nearly 90,000 BTC moved to exchanges at a loss. That kind of activity typically signals capitulation behavior among short-term holders. It was one of the sharpest loss-driven inflow spikes seen in recent months.
Those flows have since dropped sharply.
The 7-day average for loss-driven exchange inflows is now near 19,000 BTC, according to Bitfinex. That decline points to reduced panic selling. It also suggests many weaker hands have already exited their positions.
Bitcoin is now finding support between $60,000 and $67,000. This range has acted as a demand zone during the correction. The 90-day profit/loss ratio remains below 1.0, reflecting that more recent buyers are still underwater.
Per CoinGecko, BTC was trading at $68,116 at time of writing, up 0.32% over 24 hours and 5.01% over the past week.
The post Bitcoin ETFs Bleed $8.9B as BlackRock’s IBIT Sheds 42,000 BTC appeared first on Blockonomi.
Source: https://blockonomi.com/bitcoin-etfs-bleed-8-9b-as-blackrocks-ibit-sheds-42000-btc/