Bitcoin spot exchange-traded funds (ETFs) experienced significant outflows amounting to $772 million amid rising concerns over a potential economic recession influenced by a global trade war. Despite a temporary lifting of most US import tariffs on April 9, investors continued to withdraw from these funds, exacerbating the trend. Factors such as heightened corporate credit risk and investors' shift to safer assets like government bonds are contributing to the decline in interest towards BTC. Notably, the corporate bond market is facing increased scrutiny, with significant widening in bond spreads indicating a growing perception of credit risk. Analysts suggest that until investor confidence is restored in the corporate bond market, inflows into Bitcoin ETFs are unlikely to rebound. The effects of recent tariff-induced inflation are anticipated to affect economic stability, further complicating the outlook for both equities and cryptocurrencies in the medium term.

Source đź”—