President Donald Trump's recent announcement of new trade tariffs triggered a significant drop in investments in Bitcoin ETFs in the U.S. and raised concerns in financial markets.
Impact of Trade Tariffs
On April 2, Donald Trump announced a new base tariff of 10% on imported goods, with some countries facing rates exceeding 50%. This decision led to significant declines in U.S. stock markets.
Outflows from Bitcoin ETFs
On April 3, the last trading day for Bitcoin ETFs in the U.S., there was a net outflow of nearly $100 million. Leading this exodus was Grayscale's product, which saw an outflow of $60.2 million. Notable outflows also occurred from Bitwise and Fidelity.
Markets React to Statements
Trump's announcement caused panic in the stock market, with the Nasdaq index dropping by 6% and the S&P 500 by 4.8%. Amid these changes, Bitcoin lost over 6% of its value, trading around $83,220.
The escalation of trade relations as a result of tariff policy changes by Trump has led to significant changes in financial markets, including a sharp decline in investments in Bitcoin ETFs.
