Bitcoin, Ethereum ETFs See $795.77M Outflows in Q1 2025

Bitcoin and Ethereum ETFs faced substantial outflows in the first quarter of 2025, indicating a challenging market environment for both cryptocurrencies. Bitcoin ETFs experienced net outflows of $713.30 million, marking the third-highest weekly outflow of the year. Ethereum ETFs also saw significant outflows, losing $82.47 million during the same period. This trend reflects the broader bearish sentiment in the market for these assets.

The first quarter of 2025 was particularly difficult for Bitcoin, which saw a 6.49% decline in price, its weakest start since 2020. Ethereum performed even worse, dropping 37.98%, its most disappointing opening quarter since 2018. Historically, the first quarter is typically a period of substantial growth for these assets, making the recent downturns particularly noteworthy. Ethereum's struggles are further highlighted by a decreasing ETH/BTC ratio, indicating a lack of momentum against Bitcoin in a post-halving year.

Bitcoin's performance has been influenced by various economic factors, including rising trade tensions and the impact of tariffs. The asset's upward drift to $108,000, driven by bullish sentiments, now feels like a distant memory. Bitcoin struggled throughout the quarter, finishing with its worst first-quarter performance since 2018 after falling to $82,000. The asset is currently retreating into the lower $80,000 range, on course for a 12.18% decline. Inflow streaks into Bitcoin ETFs have notably dwindled this year, being capped at ten days, reflecting investor caution amidst economic uncertainties.

Despite the challenging market conditions, there are signs of potential recovery for both Bitcoin and Ethereum in the second quarter. Some analysts believe that Ethereum's price drop will be sustained in the long run, which could mean positive signals for Q2. Investors have removed over 30,000 BTC from exchanges within a week, suggesting a shift towards a longer-term holding strategy. Historically, both Ethereum and Bitcoin's performance tends to improve in the second quarter, although volatility is likely to persist with upcoming economic data releases and policy announcements.

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