Bitcoin ETFs See $442M Inflows as Trump Tariff Comments Boost Nasdaq 5%

Bitcoin ETFs have experienced a significant influx of capital, with $442 million in inflows recorded yesterday. This marks the seventh consecutive day of positive accumulation, pushing total assets under management to $108 billion. The surge in Bitcoin price and ETF inflows coincides with President Trump's comments about reducing Chinese tariffs, indicating a strengthening correlation with the Nasdaq, which has seen a 5% increase over the past week.

Analysts suggest that Bitcoin's rise is influenced by multiple factors, including dollar weakness, increased correlation with gold, and potentially favorable technical signals as it approaches the key Fibonacci retracement level of $95,400. The recent surge in Bitcoin price and ETF inflows has been driven by a combination of factors, including the potential reduction in Chinese tariffs and the strengthening correlation with the Nasdaq.

Bitcoin had begun rising from the low $80,000 range on Monday, when ETF inflows reached $381.3 million, the highest level since January. This week’s ETF inflows peaked at $912.7 million and $917 million on Tuesday and Wednesday, respectively, when President Donald Trump signalled that tariffs on Chinese goods may soon “come down substantially.”

Kathleen Brookes, the Research Director at XTB, noted that Bitcoin’s performance this week partly stems from its correlation with the Nasdaq. “The upward momentum in growth stocks in the U.S. is boosting sentiment towards Bitcoin and other crypto assets,” she said. “Bitcoin and the Nasdaq have seen a strengthening positive correlation since the start of the year, which is now above 50%, so it is to be expected that BTC ETF flows will move in the same direction as the Nasdaq more than half the time.”

Brookes also highlighted that it isn’t only the correlation with growth stocks that’s driving ETF inflows, as the cryptocurrency has generally “outperformed risky assets” this month, amid the ongoing tariff war. “We think that weakness in the dollar, and chatter about a structural shift out of the dollar and reduced confidence in US financial institutions is also fuelling demand for crypto,” she added.

Simon Peters, an analyst at eToro, echoed this view, stating that BTC has not only seen its correlation with U.S. markets decline since President Donald Trump’s so-called Liberation Day, but also its correlation with gold increase. “Amidst the uncertainty surrounding U.S. and China trade and tariffs, and potential increased recession risks in the U.S., we have seen gold trend to record highs, and Bitcoin—dubbed as ‘digital-gold’ due to its scarcity characteristics—is potentially following suit,” he said.

Peters suspects that the Bitcoin price will trend higher over the next one or two weeks, helped along by an increase in the money supply. “Sentiment is above neutral (according to the Crypto Fear & Greed Index) at this moment in time and global liquidity,” he explained, “essentially how much money is available in the global economy and a metric which the bitcoin price tracks closely, is forecast to increase throughout the year.”

Brookes is a little more cautious in her forecast, given Bitcoin’s historical volatility, yet she believes that the Nasdaq’s performance could help it maintain its recent winning streak. “If the tariff uncertainty moderates, then this will have a positive impact on Bitcoin, especially if the dollar continues to see outflows,” she said. She also adds that Bitcoin may see further upside if it clears the Fibonacci retracement level of $95,400, which is the 61.8% retracement of the January peak to the April low.