Political turmoil boosts crypto boom: Bitcoin ETF attracts $380 million in a single day, a three-month high
Against the backdrop of escalating conflicts between Trump and Fed Chairman Powell, U.S. spot Bitcoin ETFs have seen strong inflows. On April 21, net inflows reached $381.4 million, the highest since January 30. Among them, ARKB led with $116 million, and products such as FBTC and BITB also received more than $40 million in funds. This inflow trend reversed the outflow of funds in the previous two weeks, showing that institutional investors are reinvesting in Bitcoin.
This capital feast coincided with the turbulent political and economic situation. Trump recently publicly criticized Powell on his social media for "cutting interest rates too slowly", accompanied by news that he was considering removing the Fed Chairman through legal means. At the same time, Sino-US trade tensions and inflation concerns pushed gold to a record high, and Bitcoin also strengthened. It is currently around $88,500, and its total market value has returned to above $1.75 trillion.
Commenting on this situation, Kadan Stadelmann, chief technology officer of Komodo, pointed out that this reflects the wavering of investors' confidence in the traditional financial system. Because as people's trust in the traditional financial system declines, Bitcoin is becoming an important safe-haven option together with gold.
It is worth noting that the market is showing a clear trend of differentiation. In sharp contrast to the popularity of Bitcoin ETF, Ethereum ETF has experienced capital outflows for 8 consecutive weeks, and lost another $25.42 million on Monday.
U.S. stocks also performed poorly, with the S&P 500 (S&P500) and Nasdaq (IXIX) both falling by more than 2.4% on Monday. This trend of capital rotation further highlights that under the current geopolitical and monetary policy uncertainties, investors prefer Bitcoin, which has the attribute of "digital gold".
What impact will the personnel turmoil of the Federal Reserve have on the cryptocurrency market? Do you think the linkage between Bitcoin and gold will continue to strengthen? Leave your insights in the comment section!
