The cryptocurrency market witnessed a large capital outflow as investors withdrew 326 million USD from spot Bitcoin ETFs, marking the strongest withdrawal in nearly a month. With escalating trade tensions due to President Trump's tariff policy, can the crypto market weather this 'storm'? Let’s analyze in detail.
Record Capital Withdrawal: 326 Million USD Exiting Bitcoin ETFs
According to data from CoinGlass, on Tuesday (April 8, 2025), investors withdrew 326 million USD from spot Bitcoin ETFs – the largest outflow in a day since March 11, 2025, when these funds lost 371 million USD. Among them, BlackRock's spot fund – which recorded a net capital inflow of 40 billion USD since its launch in 2024 – lost 253 million USD, marking the third worst day in the fund's history.
This capital withdrawal occurs amid escalating trade tensions between the USA and its partners due to Trump’s 'reciprocal' tariff policy, effective from midnight Eastern Time (00:00 on April 2, 2025). This policy imposes tariffs on imports from over 180 countries, with the highest tariff reaching 104% on goods from China, according to the White House announcement. In response, China imposed a 50% tariff on US goods, raising the total tariff to 84%, creating a tit-for-tat trade war between the two largest economies in the world.
Investor Sentiment: 'De-Risking' Before the Tariff Storm
Analyst Valentin Fournier from BRN stated in a report on April 9, 2025, that the capital outflow is a 'clear signal of large-scale de-risking by institutions'. Fournier also pointed out that the trading volume decreased compared to the previous day, indicating that institutional investors are switching to 'defensive positioning'. This is not surprising as Trump's tariffs raise concerns about stagflation – high inflation combined with low growth – prompting investors to shift to safe assets like gold (reaching 3,171 USD/oz, according to previous information).
Spot Bitcoin ETFs are currently on a streak of 4 consecutive losing days, with only one day recording positive capital flow in April 2025. On April 2, 2025, when Trump announced 'Liberation Day', these funds attracted 218 million USD, but positive sentiment quickly reversed when tariffs took effect.
Impact on Bitcoin Price and the Crypto Market
Bitcoin price on April 9, 2025, hovered around 77,600 USD, down 2.5% in the last 24 hours (according to CoinGecko). Previously, on Monday (April 7, 2025), BTC price hit a low of 75,100 USD – near the lowest point in 5 months. Compared to the previous information (price 76,880.56 USD), Bitcoin price continues its downward trend, reflecting market pessimism.
Not only Bitcoin, spot funds also recorded a capital outflow of 3.3 million USD on April 8, 2025, led by Fidelity's Ethereum fund (according to CoinGlass). The current price of Ethereum is 1,830 USD, down 45% in Q1/2025, indicating significant pressure on the entire crypto market (market cap down 11.65% to 2.88 trillion USD).
A Small Bright Spot: Leveraged XRP ETF Launches
Amid the negative landscape, the Teucrium 2x Long Daily XRP ETF – the first leveraged product for XRP in the USA – launched on April 8, 2025. According to ETF analyst Eric Balchunas on X, this fund recorded a trading volume of 5 million USD on its first day. Although not enough to offset the overall pessimistic sentiment, this launch shows that there are still efforts for innovation in the industry, especially with altcoins like XRP.
In-Depth Analysis: The Impact of Tariffs
Trump's tariff policy not only affects crypto but also spills over into other financial markets. The 104% tariff on Chinese goods increases import costs, pushing inflation in the USA up (estimated to rise by 1.5%, according to Goldman Sachs from previous articles). China's response with a 50% tariff on US goods (totaling 84%) raises the risk of a trade war, impacting risk assets such as equities (S&P 500 at risk of a 3-5% decline) and crypto.
The capital outflow from Bitcoin ETFs (326 million USD) and Ethereum ETFs (3.3 million USD) indicates that institutional investors are concerned about the long-term impact of tariffs. If the Fed does not cut interest rates soon (expected 0.25% on May 2025, according to CME FedWatch), the pressure on the crypto market could persist, pushing Bitcoin down to the support level of 74,000 USD (according to Glassnode from previous information).
Conclusion: The Crypto Market Before the 'Storm' of Tariffs
The withdrawal of 326 million USD from Bitcoin ETFs on April 8, 2025, is a clear sign of a 'risk-averse' sentiment ahead of Trump's tariff policy. With Bitcoin and Ethereum prices continuing to plunge, the crypto market is facing significant pressure from the USA-China trade war. Despite a small bright spot from the leveraged XRP ETF, pessimism remains dominant. Investors need to closely monitor macroeconomic developments, particularly the Fed's moves and the negotiation potential between the USA and China, to adjust strategies during this period of instability.
Risk warning: Crypto investments carry high risks due to price volatility and macroeconomic instability. Please consider carefully before participating.