On April 14, 2025, the cryptocurrency market saw a strong outflow of $789 million from Bitcoin and Ethereum funds, according to a report from CoinShares. However, XRP stood out as a rare bright spot, attracting $3.5 million in investment despite the negative sentiment caused by President Donald Trump's tariff policy. Can XRP lead the trend amidst this uncertainty? Let's analyze in detail.
Record Outflow: $789 Million in One Week
According to CoinShares' report, digital asset investment products recorded an outflow of $795 million in the past week, with the #BitcoinETF fund losing $751 million and the Ethereum fund losing $38 million. This marks the third consecutive week of outflows, with a total of $7.2 billion withdrawn since February 2025 – a record high, according to James Butterfill, Director of Research at CoinShares.
The main reason is the 'wave of negative sentiment' that started in February 2025, combined with instability from Trump's tariff policy. In early April 2025, Trump announced tariffs on goods from over 180 countries, including a 125% tax on Chinese goods, causing significant market volatility. Although the White House later exempted computer chips and smartphones from tariffs, Trump declared 'no one is exempt,' increasing concerns.
Bitcoin and the Market: Contrarian Reaction
Despite the pressure on crypto funds, Bitcoin's price still increased slightly by 0.4% in the past 24 hours, reaching $85,000, according to CoinGecko. Bitcoin has recovered from a low of $74,700 last week, indicating that individual investors are willing to 'catch the bottom.' Butterfill noted: 'Since the 'Liberation Day', Bitcoin's price has outperformed stock indices.' Indeed, the Nasdaq index rose 0.88% on Monday (April 14, 2025), according to Yahoo Finance, thanks to the news of tax exemptions for technological devices, creating a positive sentiment for both stocks and crypto.
However, institutional investors appear to be pessimistic. Butterfill stated: 'Individual investors are buying in, but we don't see that on the institutional side. This indicates that institutions do not see this as an opportunity.' Since the beginning of 2025, Bitcoin and Ethereum funds have only attracted $545 million and $241 million respectively, a sharp decline from $44 billion in 2024, according to CoinShares.
XRP: A Bright Spot Amidst the Capital Outflow
While funds tracking $ETH and $SOL lost $38 million and $5 million respectively, XRP was an exception, attracting $3.5 million in investment. This move coincided with the launch of the first XRP ETF in the US – Teucrium 2x Long Daily XRP ETF – which debuted last Tuesday (April 8, 2025). Although this fund does not track the spot price of XRP but is a leveraged fund, this event still marks a significant milestone for XRP, reinforcing investor confidence in the Ripple-related token.
XRP is showing its own appeal amidst the market's negative sentiment. Over the past 24 hours, XRP has increased by 10%, outperforming many other altcoins, demonstrating its potential in the context of instability.
Impact on Financial Markets
Trump's tariff policy not only affects crypto but also has a strong impact on the broader financial markets. The tax exemption for technological devices helped Nasdaq rise 0.88%, creating a positive ripple effect on Bitcoin and altcoins. However, the pessimistic sentiment among institutional investors indicates that the crypto market still needs time to stabilize, especially as global economic warnings – such as Ray Dalio's about 'something worse than a recession' – are making large funds cautious.
Nevertheless, the growth of XRP and Bitcoin's price recovery to $85,000 are positive signals. The weakening US dollar (USDX fell from 110.15 on January 13, 2025, to 99.12 on April 11, 2025, according to #FXCE ) also creates favorable conditions for crypto and gold (gold increased by 25% since the beginning of the year) to benefit.
Future Outlook
The record outflow of $7.2 billion from crypto funds indicates that the market is under significant pressure, but XRP and Bitcoin still maintain their appeal. The launch of the XRP ETF in the US could pave the way for other altcoin-related financial products, while Bitcoin continues to be supported by individual investors and companies like Strategy (which recently bought an additional 3,450 BTC). If Trump's tariff policy is reasonably adjusted, the crypto market may soon recover and regain growth momentum.
Conclusion: XRP Rises, Bitcoin Remains Resilient
Although Bitcoin and Ethereum funds lost $789 million in the past week, XRP emerged as a bright spot with an inflow of $3.5 million and the first ETF in the US. Bitcoin, priced at $85,000, also shows resilience against the fluctuations caused by Trump's tariffs. In this economic uncertainty, can XRP and Bitcoin lead the crypto market through difficulties? Investors need to monitor closely but can still be optimistic about the long-term potential of the industry.
Risk Warning: Crypto investment carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.
