Key Points
- The United States spot Bitcoin (BTC) exchange-traded funds (ETF) hit a record $10 billion in trading volume on March 5.
- Bitcoin reached a new all-time high before experiencing a 12% drop within five hours.
On March 5, spot Bitcoin exchange-traded funds (ETF) in the United States achieved a record-breaking trading volume of $10 billion.
This occurred as Bitcoin reached a new peak, before a significant drop of around 12% over the next five hours.
Record-Breaking Trading Volume
ETF analyst Eric Balchunas reported these figures, remarking on the impressive numbers for ETFs that are less than two months old.
Alessandro Ottaviani, a Bitcoin analyst, reported a slightly lower trading volume of $9.58 billion for the funds.
This figure still surpassed the previous record of $7.7 billion set on Feb. 28.
Significant Price Fluctuations
On the day of the U.S. trading, Bitcoin experienced significant price swings.
It hit a new all-time high of $69,200 around 3:00 pm UTC on March 5, then fell 12% to a low of $60,860 about five hours later.
Despite reaching a new peak, Bitcoin was down over 6% over the last 24 hours.
IBIT and FBTC both experienced around 8.6% drop on the day, with other spot Bitcoin ETFs recording similar price drops.
In a post on March 5, an analyst jokingly explained to those new to Bitcoin through the ETFs that the price swing was a monthly occurrence during bull markets to eliminate “leveraged degenerates.”
They also pointed out that in traditional markets, the government steps in to stop trading and bail out investors if stocks fall more than 10% in a day.
Balchunas agreed, noting that there are rules and protections in place to prevent such occurrences.
