Earlier this year, Bitcoin surged to a record high of $109,000. However, the price has since retracted, dropping to $82,343 yesterday. Despite this decline, investors saw an opportunity and poured $220 million into Bitcoin ETFs, signaling continued confidence in the asset.
Leading funds such as Ark Invest and 21Shares’ ETF (ARKB) recorded the highest daily net inflow of $130.15 million, bringing their total assets under management (AUM) to $4.14 billion. In contrast, BlackRock’s ETF (IBIT) faced net outflows of $115.87 million, highlighting that not all institutional players are bullish.
In March, Bitcoin ETFs experienced a decline in market activity, with net monthly outflows reaching $767 million. However, the market remains significant, with a total ETF trading volume of $2.62 billion, a total market capitalization of $100.13 billion, and total AUM standing at $100.68 billion.
Despite turbulence in the ETF sector, the Bitcoin derivatives market has shown strength, according to data from Coinglass. Derivatives trading volume surged 59.52% to $159.67 billion, while options volume saw a 71.91% increase to $4.92 billion. Additionally, BTC’s trading volume jumped 92.84% to $53 billion, although open interest dipped slightly by 3.13% to $52.20 billion. This data suggests that while ETFs have seen mixed reactions, traders remain highly active in BTC futures and options markets.
As for Bitcoin’s price outlook, the cryptocurrency is currently trading at $83,174, reflecting a 1.92% decline in the past 24 hours. While short-term volatility persists, CNF recently reported that Network Economist Timothy Peterson has forecasted that BTC could reach $126,000 by June.
Notably, institutional adoption of Bitcoin continues to grow. Grayscale Investments has announced two new ETFs, the Grayscale Bitcoin Covered Call ETF (BTCC) and the Grayscale Bitcoin Premium Income ETF (BPI), offering alternative ways for institutions to gain exposure to Bitcoin. Meanwhile, Metaplanet, a Tokyo Stock Exchange-listed firm, strengthened its Bitcoin holdings by acquiring 696 BTC, bringing its total to 4,206 BTC. This latest move solidifies its position as the ninth-largest corporate Bitcoin holder as it pushes toward an ambitious goal of holding 10,000 BTC by the end of 2025.
U.S. Tariffs Impact Global Markets
The broader financial markets turned bearish after the U.S. government announced sweeping reciprocal tariffs on key trade partners during the Make America Wealthy Again event at the White House. President Donald Trump declared the move as “Liberation Day,” imposing steep tariffs of 49% on Cambodia, 46% on Vietnam, 34% on China, 26% on India, 25% on South Korea, and 10% on the UK. The administration framed the decision as a measure to correct trade imbalances, curb currency manipulation, and promote fairer global trade practices.
The announcement triggered broad sell-offs across multiple asset classes. The crypto market reacted swiftly, with Ethereum (ETH), the second-largest digital asset by market capitalization, slipping 4%. Ripple (XRP) followed closely, dropping 3.98%, while Solana (SOL) saw a sharp 8.09% decline. Cardano (ADA) also tumbled, losing 5.23% as investors moved to de-risk their portfolios in response to the escalating trade tensions.