BlackRock's iShares Bitcoin Trust (IBIT) reported its largest single-day net outflow since its January 2024 launch on Tuesday. According to SoSoValue data, the ETF saw outflows of $523.15 million yesterday, surpassing its previous record of $463 million set on November 14. The fund has now experienced net outflows for five consecutive trading days, totaling $1.43 billion.

As the world's largest spot Bitcoin ETF, IBIT holds net assets of $72.76 billion but has been facing a net outflow trend since late October. On a weekly basis, the fund has recorded four straight weeks of outflows, amounting to $2.19 billion.

The outflows coincide with Bitcoin's recent price decline—the cryptocurrency fell below the $90,000 mark earlier this week, down from its all-time high of $126,080 in early October. Bitcoin has since rebounded 1.6% in the past 24 hours, currently trading at $91,849.

Despite the recent outflows, Vincent Liu, Chief Investment Officer at Kronos Research, noted that institutional investors are rebalancing rather than abandoning Bitcoin entirely.

"IBIT's record outflows signal a strategic reallocation, not capitulation," Liu said. "Major allocators are de-risking, tightening exposure, and testing entry points ahead of clearer macro signals. Once clarity emerges, risk appetite and capital deployment will return swiftly."

Bitcoin and the broader crypto market continue to face liquidity tightening due to prolonged U.S. government funding uncertainty and the Federal Reserve's upcoming December rate decision.

Analysts previously suggested that liquidity could gradually recover once the U.S. government reopens, though the Fed's rate-cut decision remains the most critical market event before year-end. The CME Group's FedWatch Tool currently shows a 48.9% probability of a 25-basis-point rate cut next month.