This article discusses the recent inflows into Bitcoin ETFs amidst fluctuating market conditions influenced by President Trump’s criticisms of Fed Chair Powell. Spot Bitcoin ETFs saw $15.85 million in net inflows after significant outflows in previous weeks. Despite challenges in Ethereum ETFs, Bitcoin prices are recovering strongly, reflecting investor optimism as market dynamics evolve.
Recent data reveals that spot Bitcoin ETFs in the United States experienced modest weekly inflows of $15.85 million, ending a two-week outflow streak. This increase comes as Bitcoin prices surpassed $85k, largely due to market expectations of a looser Federal Reserve policy following President Trump’s threats to dismiss Fed Chair Jerome Powell.
During the period from April 14 to 17, inflows fluctuated: gaining $1.47 million on Monday and $76.42 million on Tuesday, but witnessing a significant outflow of $169.87 million on Wednesday. However, there was a recovery with $107.83 million flowing back into the funds on Thursday, primarily driven by substantial investment in BlackRock’s IBIT and Bitwise’s BITB.
BlackRock’s IBIT attracted $186.5 million, while Bitwise’s BITB secured $23.8 million. Other ETFs, including Grayscale’s mini BTC Trust and Invesco’s BTCO, added a collective $26.3 million. Conversely, Fidelity’s FBTC and ARK’s ARKB faced considerable outflows, totalling $174.9 million and $99.8 million respectively.
In the Ethereum sector, the losses persist as Ethereum ETFs reported $32.17 million in outflows, marking eight successive weeks of declines and nearly $910 million lost overall. This negative trend contrasts sharply with Bitcoin’s recent resurgence.
Tensions between Trump and Powell have influenced market movements, particularly following Powell’s remarks suggesting that the Fed is not in a hurry to implement rate cuts. Trump’s harsh criticism of Powell, combined with his monetary policies, sparked significant fluctuations in investor sentiment throughout the week.
Bitcoin’s resurgence to over $87,600 signifies a strong recovery, achieving a 3% increase, following news of Trump’s tariffs which initially caused market declines. It is now nearing its all-time high, having recovered more than 16% from its recent low of $75K.
This rise is paralleled by gold’s performance, as both assets are seeing gains amidst a weakening U.S. dollar—down 10% this year due to global trade tensions. Analysts at Geiger Capital indicated that Bitcoin is beginning to detach from traditional market trends, evidenced by its breakout from a descending wedge formation that historically signifies long-term growth potential.
Overall, the investor sentiment around Bitcoin appears to be becoming increasingly bullish, further reinforcing its position in the market as a viable asset.
