Bitcoin ETFs have seen significant inflows exceeding $912 million, indicating improved investor sentiment and a recovery from trade tariff concerns. US President Trump’s comments on tariffs contributed to Bitcoin surpassing $93,000. The weakening US dollar is enhancing Bitcoin’s appeal as a safe haven asset, reflecting its changing status in the market. Analysts predict a potential surge in Bitcoin prices by 2025 amidst growing institutional investment.
Investments in Bitcoin exchange-traded funds (ETFs) have recently surged, echoing figures from January and indicating a recovery in investor sentiment following concerns regarding global trade tariffs. On April 22, US spot Bitcoin (BTC) ETFs recorded cumulative net inflows exceeding $912 million, the most significant daily investment since January 21, as reported by Farside Investors data. James Butterfill, head of research at CoinShares, highlighted this as a remarkable improvement in market sentiment.
The optimism surrounding Bitcoin coincided with a statement from US President Donald Trump, who indicated that tariffs on Chinese imports would likely reduce significantly, reflecting a more conciliatory negotiation stance. The subsequent de-escalation in trade tensions, combined with increasing ETF inflows, enabled Bitcoin’s price to breach the $93,000 mark for the first time in seven weeks, as noted by Cointelegraph on April 23. Analysts suggest that the inflow of institutional investment and the rise of ETFs may catalyse an acceleration of Bitcoin’s historic four-year cycle, pushing prices to new heights by late 2025.
Further boosting investor interest in Bitcoin is the recent weakness of the US dollar, which has declined nearly 9% since the start of 2025, striking a three-year low. This decline in dollar strength enhances Bitcoin’s appeal as a safe-haven asset amid economic uncertainty, according to Ryan Lee, chief analyst at Bitget Research. He indicates that macroeconomic factors, including the weakening dollar and rising gold correlations, reinforce Bitcoin’s status as a hedge against market volatility.
Market dynamics reveal that Bitcoin has evolved beyond being influenced solely by technology stocks and is now regarded as a crucial asset amid ongoing economic challenges. Analyst Iliya Kalchev from Nexo points out that Bitcoin’s recent performance reflects a recalibration of market perceptions regarding safety in assets, benefitting from substantial ETF inflows and institutional investments. This shift implies Bitcoin is increasingly viewed as a lens to assess macroeconomic uncertainties.
Alex Svanevik, CEO of Nansen, commended Bitcoin’s growing resilience, suggesting that it is transitioning from being compared to technology stocks (Nasdaq) to behaving more like gold. Despite its strengthening position as a refuge during economic disruptions, potential economic recession remains a concern for its price prospects. On April 21, BitMEX co-founder Arthur Hayes warned that this may be the final opportunity to purchase Bitcoin below the $100,000 threshold, as anticipated US Treasury buybacks might serve as a significant catalyst for its price movement.
