Bitcoin Faces $240 Million Outflows as US Trade Tariff Concerns Weigh on Market Sentiment

Digital asset investment products experienced significant outflows last week, totaling $240 million, with Bitcoin bearing the brunt of the withdrawals. The outflows were likely driven by concerns over US trade tariff developments and their potential impact on economic growth. Despite the outflows, total assets under management (AUM) in the digital asset space remained relatively stable at $132.6 billion, marking a slight 0.8% increase. CoinShares highlighted the resilience of digital assets compared to traditional markets, such as MSCI World equities, which saw an 8.5% decline during the same period. This summary explores the key factors behind the outflows and the broader implications for the cryptocurrency market.

Digital Asset Outflows Hit $240 Million Amid US Trade Tariff Concerns

Last week, digital asset investment products saw $240 million in outflows, possibly due to US trade tariff developments impacting economic growth. Total assets under management remained stable at $132.6 billion, a slight 0.8% increase. CoinShares noted that this stability is remarkable compared to other asset classes like MSCI World equities, which dropped 8.5% during the same period. Most outflows came from Bitcoin, with $207 million leaving the market, reducing its year-to-date inflows to $1.3 billion.

Long-Term Bitcoin Holders Are Moving Coins—Further Sell-Off Incoming?

Bitcoin faced a notable sell pressure earlier today, trading as low as $74,604 but rebounding slightly to hover above $79,000. Despite this, the asset is still down by 3.1% in the past day and nearly 30% from its January peak above $109,000. According to CryptoQuant contributor IT Tech, there is a significant surge in the Exchange Inflow Coin Days Destroyed (CDD) metric, which measures the movement of older coins that have not changed hands for a long time. This could signal a potential sell-off ahead.

Jamie Dimon Warns of Tariff Turbulence; Crypto Markets React

In a striking shift, 60% of Polymarket bettors now predict a 2025 recession following Trump’s unveiling of sweeping global tariffs. With markets reacting, Bitcoin’s sharp fluctuations underscore broader investor nervousness. JP Morgan CEO Jamie Dimon warns that Trump’s tariff policy may heighten the odds of a recession and prompt an economic slump. As markets reel, Bitcoin and other digital assets are feeling the shockwaves.

Pakistan Taps Changpeng Zhao to Help Shape National Crypto Strategy

Pakistan has appointed Binance co-founder Changpeng Zhao as a strategic advisor to its Crypto Council. This move signals Islamabad’s growing interest in integrating digital assets into its financial system. Zhao, better known as “CZ” in the crypto world, will guide the council on key areas including regulation, infrastructure, education, and adoption. The appointment comes amid the government’s push to build a globally competitive digital finance platform and attract foreign investment after narrowly avoiding a financial default in 2023. Finance Minister Muhammad Aurangzeb stated that with CZ onboard, Pakistan aims to accelerate its vision to become a regional powerhouse for Web3, digital finance, and blockchain-driven growth.

Chinese Yuan Devaluation Could Drive Capital Flight into Bitcoin - Arthur Hayes

BitMEX co-founder Arthur Hayes has highlighted the potential for a Chinese Yuan devaluation, suggesting it could lead to a capital flight into Bitcoin. Historically, this trend has worked in 2013 and 2015, and a Forbes report supports this thesis, noting that Chinese investors turned to Bitcoin during capital flight restrictions in 2017. Hayes believes this could happen again in 2025, potentially driving a surge in Bitcoin demand.