U.S. Bitcoin exchange-traded funds (ETFs) have experienced their most extended period of withdrawals since launching in January 2024, with over $5.5 billion in outflows over the past five weeks.
This decline in value coincides with growing investor caution, as many are pulling away from high-risk investments due to concerns about U.S. President Donald Trump’s tariff policies and broader economic instability.
Despite Trump’s historically favorable stance on cryptocurrencies, including discussions on digital asset stocks, both Bitcoin and other digital currencies have faced significant struggles in 2025. Experts believe the negative market sentiment driven by escalating trade tensions is outweighing any optimistic views on digital assets.
“Right now, Bitcoin and cryptocurrencies are largely influenced by broader economic trends. I don’t foresee Bitcoin separating itself from other risk assets in the near future,” said Greg Magadini, Amberdata’s director of derivatives.
READ MORE:
Bitcoin Could Plunge Over 75%, Warns Economist Peter Schiff
Bitcoin, which surged to record highs following Trump’s election win, has since faced a decline, with its value down by 12% year-to-date. With continued economic uncertainty surrounding risky assets, investors remain on edge, closely monitoring whether Bitcoin can break free from its current downturn.
Alexander Stefanov
