Amid rising economic and trade risks, investors have withdrawn significant funds from Bitcoin ETFs, raising concerns in the market.
Financial Strain on Bitcoin ETFs
On Tuesday, investors pulled $326 million from Bitcoin ETFs, marking the largest one-day drop since March 11. This outflow was largely driven by concerns over the trade war between the U.S. and its partners, particularly China.
Current State of the Crypto Market
As a result of the outflows, BlackRock suffered the greatest loss, totaling $253 million. Analyst Valentin Fournier noted that this indicates a 'large-scale de-risking' by institutional investors. The reduced trading volume suggests that investors are moving to safer assets.
Impact of Tariffs on Cryptocurrency Market
Although Bitcoin's price dipped to $75,100, the announcement of a 90-day delay on tariffs by Trump has allowed the cryptocurrency to start recovering. Currently, Bitcoin trades at $82,332. Other cryptocurrencies like Ethereum also saw outflows, albeit in lesser amounts, reflecting a general risk-off sentiment.
The cryptocurrency market remains tense due to global trade and economic uncertainties. However, the recent announcement about the tariff pause may offer the market a chance for recovery.
