04.02.2025 13:02
After Donald Trump's new customs tariffs, Bitcoin ETFs experienced sharp declines. As Fidelity, ARK, and other major funds recorded significant outflows, the cryptocurrency market saw a substantial loss in value overall.
With rising trade war concerns in the US and President Donald Trump's announcement of new tariffs, Bitcoin exchange-traded funds (ETFs) experienced significant outflows. Spot Bitcoin ETFs ended a four-day streak of gains with a net outflow of $234 million, while the global crypto market suffered a major loss in value.
US-China Tensions Negatively Impact Crypto Markets
Global trade tensions have led to fluctuations in the cryptocurrency markets, with US spot Bitcoin ETFs recording significant losses on February 3. According to data released by SoSoValue, a total capital outflow of $234.54 million occurred from 12 spot Bitcoin ETFs. This situation ended a period of fund inflows that lasted four days and exceeded $1 billion.
The largest portion of investor outflows occurred in Fidelity's FBTC fund, which saw an outflow of $177.64 million in a single day. A similar trend was observed in ARK funds. According to the data, there was an outflow of $50.75 million from ARK and $21 million from 21Shares. VanEck's HODL and Bitwise's BITB funds also experienced a total capital loss of $14.17 million.
Despite this overall downward trend, Grayscale's GBTC fund exhibited positive performance for the first time since January 17, recording an inflow of $8.02 million. However, due to high transaction fees, GBTC had faced a total net outflow of $21.88 billion since its market entry.
Amid market fluctuations, the daily trading volume of Bitcoin ETFs increased. The trading volume rose from $3.45 billion the previous day to $5.88 billion.
These developments occurred following President Donald Trump's announcement of new tariffs on Canada, Mexico, and China. As a result of the announcement, the cryptocurrency markets experienced a loss of over $500 billion in value, leading to $2 billion in liquidations in the derivatives market.
The price of Bitcoin fell from $105,000 on January 31 to $91,441 on February 3. This drop marked the lowest level in the last three weeks. After Trump reached an agreement with the leaders of Mexico and Canada to postpone tariffs for a month, Bitcoin briefly surpassed $100,000 on February 4 and then stabilized around $99,047.
Trump also recently signed an executive order proposing the establishment of a national sovereign wealth fund. The cryptocurrency community is considering the possibility that this fund could be used for Bitcoin purchases.