Bitcoin Plunges to 10-Month Low Amidst ETF Outflows and Geopolitical Tensions
1min read Bitcoin's price plummeted this week, reaching its lowest level since November 2021, as investors cashed out of exchange-traded funds (ETFs) and concerns over economic instability mounted. The cryptocurrency market witnessed a significant selloff, with Bitcoin's price dropping to $84,700, reflecting a 12% decrease over the past week.
Analysts attributed the decline to investors selling "risk-on" assets like stocks and crypto due to geopolitical tensions, particularly President Trump's ongoing trade war. This week, Bitcoin's price fell amidst ETF outflows and state resistance to reserve plans, hitting a low of $78,393.
The cryptocurrency market has not been kind to Bitcoin this week, with the digital asset dropping to unprecedented lows. Market pressures from wider economic factors, such as fears of prolonged inflation and interest rate hikes, have led investors to pull back. The swift decline has left many wondering if this marks the end of the current bull market or merely a temporary correction in an ongoing upward trajectory.
Recent movements in the exchange-traded fund (ETF) market have revealed a concerning trend for Bitcoin. Over the past few days, Bitcoin ETFs experienced their largest outflows on record, with over $1.1 billion exiting these financial products. This selloff is primarily driven by investor apprehension regarding U.S. economic policies under President Trump, particularly his ongoing trade war. According to analysts, these trends in ETF performance—typically characterized by positive and negative fluctuations—indicate potential recovery periods ahead. Just last Friday, Bitcoin ETFs registered a small influx of $93 million, suggesting a possible turn in sentiment.
Market analysts have warned that further declines could be imminent for Bitcoin, with predictions suggesting the cryptocurrency could dip below $80,000. As traders assess the Federal Reserve's future actions, the rising inflation rates have made prospective rate cuts increasingly unlikely. Historically, Bitcoin performs well in a low-interest-rate environment, and current economic conditions have made many investors reassess their positions. Furthermore, on-chain data indicates that most selling pressure is originating from newer investors, who may lack the experience to navigate these volatile market conditions.
This week also saw a noteworthy adjustment in Bitcoin's mining difficulty, which dropped from over 114 trillion to 110.5 trillion. This shift can 