Bitcoin ETFs Suffer Record $5.5 Billion Outflows Amid Trump’s Tariff Hike
Trump’s tariff wars have triggered a wave of panic among crypto investors. With Bitcoin ETFs seeing historic outflows, the market is bracing for turbulence.
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Bitcoin ETFs in the U.S. are bleeding capital at record levels. Over the past few weeks, investors have pulled a total of $5.5 billion from 12 Bitcoin ETFs, making this the longest stretch of withdrawals since these funds debuted in January last year.
The recent Bitcoin ETF sell-off is largely driven by Trump’s aggressive tariff policies, which have made investors cautious about high-risk assets. With new import taxes causing economic uncertainty, interest in cryptocurrencies is declining.
Greg Magadini, Derivatives Director at Amberdata, notes that Bitcoin is feeling the pressure as investors move to safer assets. He emphasizes that Bitcoin’s performance remains heavily influenced by macroeconomic trends.
Bitcoin’s Love-Hate Relationship with Trump
When Trump won the election in November 2024, Bitcoin skyrocketed to record highs. But by 2025, the tide had turned. Investors rushed to cash out, and Bitcoin ETFs saw weeks of continuous capital outflows.
The largest crypto funds just endured their longest outflow streak since launching in January 2024, signaling that even early excitement about Trump’s return and potential pro-business reforms wasn’t enough to sustain confidence in crypto.
“Bitcoin and crypto overall remain driven by the macro picture right now. I don’t expect Bitcoin to diverge from risk-assets for the time being,” said Greg Magadini, Director of Derivatives at Amberdata.
Market analysts believe that investors will only return to Bitcoin if trade tensions ease. Until then, most are playing it safe, opting for stable assets amid fears of more economic uncertainty. Experts predict that crypto’s rollercoaster ride is far from over.
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