U.S.-based Bitcoin ETFs experienced unprecedented trading volumes on March 5th, as Bitcoin's surge to new heights ended in a steep decline, dropping over 14% from a peak above $69,000. 

The ten ETFs, including major ones like BlackRock's IBIT, Fidelity's FBTC, and Bitwise's BITB, along with ARKB by Ark Invest and 21Shares, collectively surpassed $10 billion in trading, setting a new daily record, as per Bloomberg's analysis by ETF expert Eric Balchunas

Notably, IBIT emerged as the fourth most traded ETF with a volume exceeding $3.8 billion. Balchunas highlighted the extraordinary activity for these ETFs, considering they launched less than two months ago, starting January 11th in the U.S.

Last week saw intense trading in Bitcoin ETFs, driven by significant inflows as the funds garnered more than $1.7 billion in new investments. 

Today's market movements suggest a wave of profit-taking might be underway, with traders possibly unnerved by extreme market swings or opting to sell their ETF shares to capitalize on Bitcoin's 50% price surge in the last month.

Alex Thorn, Galaxy's Head of Research, raised another possibility on X, noting that encountering resistance at Bitcoin's previous peak during the 2020 cycle was somewhat anticipated, and suggesting that Bitcoin is currently following a similar pattern.

In December 2020, Bitcoin briefly hit its then peak of $20k, dipped by 11.3% over 15 days, then broke the all-time high. A similar trend could unfold now, especially after a +62% increase year-to-date and +77% from January 2023's low, indicating potential for consolidation.

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