Bitcoin Price Crash: Crypto Funds See $240M Outflows as Market Tries to Recover from Trump Tariff Impact
Bitcoin experienced a sharp crash yesterday, falling in tandem with global market turmoil sparked by renewed concerns over U.S. trade policy.
The sudden downturn came as President Donald Trump’s proposed tariffs reignited fears of a global economic slowdown, prompting a sell-off across traditional equities and risk assets—including cryptocurrencies. Bitcoin dropped below key support levels, rattling investor sentiment and triggering a wave of liquidations in crypto derivatives markets.
The impact has been immediate and widespread, with digital asset investment products seeing over $240 million in outflows. Bitcoin-focused exchange-traded products (ETPs) led the decline, accounting for a significant portion of the withdrawals. Analysts note that the movement reflects heightened uncertainty, especially among institutional investors who have recently become more active in the crypto space. The reaction underscores how closely Bitcoin is now linked to macroeconomic developments and policy decisions in traditional finance.
Even with the significant losses, Bitcoin is already displaying signs of recovery. Since the cryptocurrency bottomed out during the fall, it has started to stabilize, indicating that the worst of the panic may be over for the time being. Some market observers think that this might only be a short-term correction, and that as market anxiety subsides, buying pressure will probably resume. Long-term holders are still building up, according to on-chain measurements, which suggests that investors are confident in Bitcoin’s long-term course despite the recent volatility.
In addition to Bitcoin, the broader crypto market is also attempting to rebound, with altcoins like Ethereum and Solana gradually recovering from their recent dips. However, caution remains high as traders assess the potential for further macroeconomic shocks, particularly if tariff threats escalate into real-world trade disruptions.
While Bitcoin’s recent crash highlights its ongoing volatility, it also underscores the asset’s evolving role in the financial system. As geopolitical factors and fiscal policy increasingly influence crypto markets, Bitcoin’s ability to weather these storms will be closely watched by both institutional and retail investors. The coming days will be critical in determining whether this is merely a blip or the beginning of a broader trend in crypto market sentiment.
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