Why did IBIT ETF volume hit a record today?

Large funds likely reduced risk into a fast drop, creating heavy two-way trade in IBIT. Redemptions and block crosses boosted turnover as dealers hedged exposure. When one vehicle concentrates flows, volume can spike even as price falls. This mix often signals capitulation rather than fresh bullish demand.

How do ETF flows affect the Bitcoin price?

Spot ETF creations add buy pressure because issuers source underlying coins. Redemptions do the opposite and push supply back into the market. When outflows cluster, dealers hedge by selling, which can deepen dips. Sustained net inflows often precede more stable ranges and stronger recovery attempts.

What does extreme put skew mean for near-term moves?

It means downside options cost more than upside, showing strong demand for protection. Dealers short gamma will sell into declines and buy into rebounds, widening swings. If skew eases as puts decay or are closed, flows stabilize. That shift can help restore a more balanced and tradable tape.

Should Hong Kong investors buy the dip or wait?

Consider phasing entries rather than calling a single low. Keep size small, use defined stops, and avoid thin liquidity windows. Wait for signs of stabilization like improving ETF flows, easing put skew, and smaller liquidation clusters. If those improve together, the odds of a durable recovery rise.

Global Market Insights

BTCUSD Today, February 7: Record IBIT Volume Signals Hedge-Fund Capitulation

ByDanny Kontos February 7, 2026February 7, 2026

Bitcoin price action turned disorderly today as BTCUSD reacted to record IBIT ETF volume above $10 billion alongside a 13% single-day slide. US spot Bitcoin ETFs also saw about $434 million in net outflows, while options showed extreme put skew. Together, these signals point to forced deleveraging by hedge funds and dealers hedging short gamma. For Hong Kong investors, liquidity pockets and flow direction will drive intraday swings and the next leg of price discovery.