Crypto Investment Products Hit by Second Week of Outflows Amid Trade Tensions
Global cryptocurrency funds bled another $795 million last week as investors retreated from riskier assets following President Donald Trump’s aggressive tariff policies. The outflows mark the second consecutive week of declines, erasing nearly all gains made earlier this year, according to data from asset manager CoinShares.
Bitcoin, the largest cryptocurrency, briefly dipped below $75,000 before rebounding to $84,000 by Friday. Analysts attribute the volatility to macroeconomic uncertainty, though some see signs of stabilization as trade tensions show hints of easing.
Tariffs Shake Investor Confidence
Trump’s “reciprocal tariffs” — including a 125% levy on Chinese goods — sparked fears of a prolonged trade war, pushing investors toward safer assets. Crypto funds, particularly in the U.S., bore the brunt of the sell-off, with $763 million exiting American products. Switzerland, Hong Kong, and Germany also saw significant withdrawals.
James Butterfill, Head of Research at CoinShares, noted the tariffs created a “risk-off domino effect,” but added that Bitcoin’s late-week recovery suggests “the worst may be over.”
Bitcoin and Ethereum Lead Losses
• Bitcoin funds: $751 million in outflows, though year-to-date inflows remain positive at $545 million.
• Ethereum products: $37.6 million exited, with U.S. spot ETFs accounting for most withdrawals.
• Altcoins: Mixed performance. XRP and Avalanche funds saw modest inflows, while Solana and Aave products declined.
Despite the turbulence, the GMCI 30 index of top cryptocurrencies rose 13% over the week, signaling cautious optimism.
Is a Crypto Rebound Ahead?
Markets reacted sharply to China’s retaliatory tariffs on Friday, but exemptions for semiconductors and electronics hinted at potential negotiations. Valentin Fournier, analyst at BRN, said the move “reassured investors that neither side wants economic chaos,” predicting Bitcoin could retest $90,000 soon.
Meanwhile, U.S. spot Bitcoin ETFs recorded $707.9 million in outflows, reflecting retail and institutional caution.
The Bigger Picture
While tariffs have no direct impact on blockchain technology, they’ve amplified crypto’s correlation with traditional markets. Bitcoin’s rebound, however, underscores its growing role as a hedge against geopolitical instability. As Butterfill observed, “Digital assets are often first to fall — and first to recover.”
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Global crypto funds lose $795M amid Trump tariffs, Bitcoin rebounds to $84K. Experts see potential easing of trade tensions.
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Crypto Funds Shed $795M as Tariffs BiteTitle: Trump’s Tariff Turmoil Drains $795M from Crypto Funds as Bitcoin Struggles to Rebound
Crypto Investment Products Hit by Second Week of Outflows Amid Trade Tensions
Global cryptocurrency funds bled another $795 million last week as investors retreated from riskier assets following President Donald Trump’s aggressive tariff policies. The outflows mark the second consecutive week of declines, erasing nearly all gains made earlier this year, according to data from asset manager CoinShares.
Bitcoin, the largest cryptocurrency, briefly dipped below $75,000 before rebounding to $84,000 by Friday. Analysts attribute the volatility to macroeconomic uncertainty, though some see signs of stabilization as trade tensions show hints of easing.
Tariffs Shake Investor Confidence
Trump’s “reciprocal tariffs” — including a 125% levy on Chinese goods — sparked fears of a prolonged trade war, pushing investors toward safer assets. Crypto funds, particularly in the U.S., bore the brunt of the sell-off, with $763 million exiting American products. Switzerland, Hong Kong, and Germany also saw significant withdrawals.
James Butterfill, Head of Research at CoinShares, noted the tariffs created a “risk-off domino effect,” but added that Bitcoin’s late-week recovery suggests “the worst may be over.”
Bitcoin and Ethereum Lead Losses
• Bitcoin funds: $751 million in outflows, though year-to-date inflows remain positive at $545 million.
• Ethereum products: $37.6 million exited, with U.S. spot ETFs accounting for most withdrawals.
• Altcoins: Mixed performance. XRP and Avalanche funds saw modest inflows, while Solana and Aave products declined.
Despite the turbulence, the GMCI 30 index of top cryptocurrencies rose 13% over the week, signaling cautious optimism.
Is a Crypto Rebound Ahead?
Markets reacted sharply to China’s retaliatory tariffs on Friday, but exemptions for semiconductors and electronics hinted at potential negotiations. Valentin Fournier, analyst at BRN, said the move “reassured investors that neither side wants economic chaos,” predicting Bitcoin could retest $90,000 soon.
Meanwhile, U.S. spot Bitcoin ETFs recorded $707.9 million in outflows, reflecting retail and institutional caution.
The Bigger Picture
While tariffs have no direct impact on blockchain technology, they’ve amplified crypto’s correlation with traditional markets. Bitcoin’s rebound, however, underscores its growing role as a hedge against geopolitical instability. As Butterfill observed, “Digital assets are often first to fall — and first to recover.”
