BlackRock’s IBIT ETF shattered records by hitting $70B AUM in 341 days, showing explosive institutional demand for Bitcoin.
Over $1.1B in Bitcoin shorts risk liquidation as BTC nears $110K, triggering fears of a massive short squeeze in the market.
High leverage positions in BTC futures raise volatility risk as price action approaches critical liquidation clusters on both ends.
BlackRock’s IBIT spot Bitcoin ETF has made history, surpassing $70 billion in assets under management within just 341 days. This marks the fastest ascent ever by an ETF, outpacing industry giants like GLD, VOO, and IEMG. The rapid surge highlights a seismic shift in Wall Street’s appetite for Bitcoin exposure. Consequently, institutional demand has entered a new phase, breaking traditional investment growth records in less than a year.
Source: CryptoBusy
Besides IBIT’s swift rise, historical performance from other ETFs illustrates a slower but steady upward trend. For instance, GLD took 1691 days to cross the $35 billion mark. Meanwhile, IEFA and VOO both reached approximately $58 billion over periods of 1773 and 1701 days, respectively. IEMG had the longest journey, needing 2063 days to approach $68 billion. However, none matched IBIT’s acceleration. Each fund shows exponential growth patterns, but IBIT's momentum stands out due to concentrated capital inflows.
Bitcoin Price Action Nears Critical Levels
Meanwhile, Bitcoin’s price action is edging closer to triggering a massive short squeeze. Coin Bureau highlights that $1.1 billion in short positions are at risk of liquidation if Bitcoin retests its all-time high. Currently priced around $109,277, BTC trades dangerously close to high-leverage liquidation clusters. Most of these short positions lie between $110,000 and $115,000, creating upward pressure.
Source: Coin Bureau
Moreover, Binance BTC/USDT futures reveal a volatile landscape with heavy leverage activity. Positions at 50x and 100x leverage show extreme risk concentration. The 50x tier alone holds over $52 million in exposure. Hence, even a modest price move could set off a chain of liquidations. Red zones on the map identify long positions at risk, while green areas mark short liquidation zones below the current price.
Market Structure Faces Volatility Risks
Additionally, the market remains structurally vulnerable to sharp moves in either direction. The liquidation heatmap reflects concentrated leverage buildup on both sides. Most recent trading activity occurred between $94,282 and $111,954, anchoring the current volatility range. Price fluctuations above this window could squeeze shorts.
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