Recent days have seen a notable decrease in fund flows into US Bitcoin ETFs, attributed to market uncertainties and trade policy changes.
Outflows in Bitcoin ETFs
On May 29, US Bitcoin ETFs faced their first significant outflow of funds in 10 days, totaling $358.65 million. This decline followed record inflows of $4.2 billion during the same period. Fidelity was the top contributor to outflows at $166.32 million, followed by Grayscale at $107.53 million and ARK 21Shares at $89.22 million.
Bitcoin Market Amid Uncertainty
Uncertainty has arisen from conflicting court decisions regarding Donald Trump’s tariffs, leading investors to express concern. Consequently, the price of Bitcoin dipped to $105,332. However, this month has still seen significant inflows into Bitcoin ETFs, reaching about $5.85 billion.
Future of Bitcoin and Its Market Dynamics
Experts believe that the current market fluctuations may reflect a temporary correction rather than a bearish reversal. Some analysts highlight that Bitcoin will likely continue to track major US indices, though the correlation may weaken as Bitcoin matures into a distinct asset class. 'Given these dynamics, it is likely that BTC will continue to trade within this range, potentially building a solid foundation for the next leg higher,' said Ruslan Lienkha.
The decrease in flows to Bitcoin ETFs amidst general market fluctuations and uncertainty relates to changes in trade policy. Nevertheless, the prevailing trend remains positive.
