The escalating trade tensions between the United States and the European Union have caused fluctuations in global markets. The Trump administration's additional tariffs on steel and aluminum imports prompted the EU to retaliate with a €26 billion response.
Delayed Crypto ETF Approval Expectations
The decision by the U.S. Securities and Exchange Commission (SEC) to postpone ETF approval processes for cryptocurrencies like XRP, SOL, LTC, ADA, and DOGE until May 2025 led to significant market reactions. The regulatory body announced a roundtable discussion focused on asset classification and regulatory framework, scheduled to begin in March.
Record Bitcoin ETF Withdrawals
Grayscale Bitcoin Trust (GBTC) sold 641 BTC within 24 hours, resulting in a $56.45 million outflow. This action decreased GBTC’s total assets to $17.24 billion, with overall net outflows from Bitcoin ETFs recorded at $153.87 million.
Impact on Institutional Investors
The increasing caution among institutional investors has raised questions about confidence in the cryptocurrency market. Conflicting signals regarding inflation concerns and expectations of interest rate cuts are prompting investors to steer clear of risks.
The trade tensions and delayed ETF discussions have created turbulence in the cryptocurrency market. Special attention should be given to the upcoming Consumer Price Index (CPI), which could significantly reshape market dynamics.
