Trump's Tariff War Sparks $234M Bitcoin ETF Outflows

Bitcoin ETFs See $234M in Outflows as Trump's Tariff War Rattles Markets

Bitcoin exchange-traded funds (ETFs) experienced a significant outflow of $234 million following President Trump's escalation of the U.S.-China trade war. The tariff conflict has led to increased market volatility, with cryptocurrencies reacting like traditional financial assets.

Crypto traders initially adopted a "buy-the-dip" strategy, causing XRP and Dogecoin to surge by 20% before reversing course. The gains were wiped out as China retaliated with fresh tariffs on U.S. imports, denting investor sentiment and causing a pullback in crypto markets.

Analysts are divided on the long-term impact of the trade war on crypto markets. While some believe the damage could be controlled if the U.S. introduces more crypto-friendly policies, others warn of extended pullbacks if tensions rise further.

XRP and Dogecoin remain at the mercy of global economic tensions. Despite their recent price action, both cryptocurrencies could see a rebound if buyers step in and push prices higher. However, the ongoing trade war may lead to more dramatic price swings in the near future.

Bitcoin and other cryptocurrencies have been affected by the U.S.-China trade tension, with the BTC market declining by at least 2.66% on February 1. The market has been volatile, with gains and losses occurring in response to developments in the trade war.

Experts predict ongoing volatility and a new trading range in the BTC market, as the U.S. administration is expected to announce a new digital asset policy today. The conference, hosted by David Sacks, the artificial intelligence and cryptocurrency czar of Donald Trump, will likely explain how the U.S. can become a global leader in the crypto sector.

US Ether ETFs hit record volume as Trump tariffs rattle market, with $1.5 billion in trading volume led by BlackRock's iShares Ethereum Trust. Ether plunged as much as 27% to $2,135 on Monday, triggering liquidations totaling more than $600 million in perpetual futures markets. US investors seized on the steep decline, driving $84 million in net inflows into the Ether ETFs.