Bitcoin's Price Stagnates as ETF Enthusiasm Fades, Gains Slow to 20%

Bitcoin's price has been hovering below the $95,000 mark, showing little movement as the enthusiasm for exchange-traded funds (ETFs) linked to the cryptocurrency has cooled. This week, major ETFs experienced a small net outflow, indicating a slowdown in the buying momentum that had previously driven Bitcoin's gains. The world’s largest cryptocurrency had marked a strong rally through April, adding nearly 20% and wiping out its annual losses as sentiment improved from troughs seen earlier this year. However, broader crypto markets largely lagged this rebound, given that a bulk of Bitcoin’s gains were driven by large buying action from institutional investors piling into spot ETFs.

Bitcoin's recent rally was fueled by a combination of bargain buying and institutional investment in spot ETFs. Data showed that Bitcoin ETFs clocked eight straight days of outsized inflows through late-April, with inflows only slowing this week. The world’s largest crypto had slumped to lows around $70,000 in March and April- its weakest levels so far in 2025- as risk appetite was eroded by heightened uncertainty around global trade and economic growth. However, some easing in this uncertainty helped spur Bitcoin’s gains, especially after President Donald Trump postponed steep reciprocal tariffs against major U.S. trading partners by 90 days. But Trump still led the U.S. into a renewed trade war with China, dampening the global economic outlook. Softer-than-expected gross domestic product data released this week added to the anxiety, given that it showed the U.S. economy unexpectedly shrank in the first quarter.

Bitcoin and other cryptocurrencies are largely speculative in nature, meaning that they move more on sentiment than actual fundamentals. This trend is expected to weigh on crypto in the coming weeks, especially if sentiment towards the U.S. economy worsens. The economic landscape remains uncertain, adding to the jitters in the market. Analysts have noted that the recent slowdown in ETF inflows is a significant factor in the price movement, as these funds have been a major driver of Bitcoin's recent gains. The economic jitters, stemming from various global factors, have also played a role in dampening investor sentiment. Despite the current price level, some analysts predict that Bitcoin could still see further gains in the coming months, provided that economic conditions stabilize and ETF flows pick up again. However, the market remains volatile, and any sudden shifts in economic policy or investor sentiment could lead to significant price movements.