Bitcoin Price Decline and Institutional Outflows Amid Tariff Uncertainty

Bitcoin’s price slipped to $83,288 on Wednesday, down 0.48%, following US tariff policy uncertainties. CoinShares reported $751 million in institutional outflows from Bitcoin, marking the third consecutive week of negative trends. Concerns over a shrinking appeal of Bitcoin as a safe-haven asset amidst this volatility are rising.

Bitcoin’s price fell by 0.48% on Wednesday, settling at $83,288 and under the $84,000 threshold. This decline was influenced by the US government’s shifting policies on trade tariffs, which have cast doubt across financial markets, including cryptocurrencies. Data from CoinShares indicated that this week, Bitcoin recorded institutional outflows totalling $751 million.

The instability surrounding US tariff policies, especially in the context of trade tensions with China, has increased uncertainty within global markets. Although some exemptions for specific Chinese electronic goods have been introduced, key tariffs remain on essential sectors such as semiconductors and pharmaceuticals. This environment has led to a growing risk aversion among investors, who view cryptocurrencies as high-risk assets.

Bitcoin’s reputation as a safe-haven asset during periods of economic uncertainty may be waning. The expected inverse relationship between risk-off market sentiments and Bitcoin’s performance appears to be diminishing, indicating that the ambiguity related to tariffs is shaping a unique market dynamic for cryptocurrencies.

CoinShares data also revealed significant institutional withdrawals from Bitcoin funds, with outflows reaching $751 million last week. This amount forms a large portion of the total $795 million withdrawn from the entire cryptocurrency sector. This trend marks three weeks of consecutive outflows for Bitcoin investment products, signalling waning confidence among institutional investors. Notably, cumulative outflows from cryptocurrency investment products from February to April have reached a staggering $7.2 billion.