The Bitcoin ETF has ushered in a wave of selling. On February 25, ETF outflows reached a high since its issuance, exceeding US$1 billion. The price of Bitcoin has fallen from its historical high by more than US$20,000. The uncertainty caused by Trump is dominating the market, and Bitcoin ETFs are ushering in a wave of selling.
Data shows that the Bitcoin ETF has experienced capital flight for five consecutive weeks since February 10, with a total outflow of more than US$5.5 billion, setting a record for the longest outflow. On February 25, ETF outflows reached a high since its issuance, exceeding US$1 billion.
As of press time, Bitcoin has fallen from a historical high of $106,490 to $83,189. The drop of more than $20,000 reflects the flow of ETF funds and further reflects the sharp deterioration in market sentiment.
While Bitcoin’s supporters still believe in its long-term value, short-term uncertainty has undoubtedly weighed on the market. Although the Trump administration has proposed policies friendly to the crypto industry such as establishing a digital asset reserve, these positive factors have been overshadowed by the shadow of the trade war it has set off.
Greg Magadini, director of crypto derivatives analytics firm Amberdata, noted in a report:
Bitcoin and the overall cryptocurrency market are currently still driven by macro conditions. In the short term, I don’t see Bitcoin diverging significantly from risk assets.
This professional view further confirms the general market view: In the current environment, the influence of macroeconomic policies far exceeds the Trump administration’s supportive stance on cryptocurrencies, and the risk aversion triggered by the trade war has become a key factor dominating the market.