Bitcoin suffers while Trump rates return to pre-election levels
The losses of XRP followed Bitcoin (BTC), who had to deal with intense sales pressure after Trump’s rate announcements. BTC spot ETF inflow, however, helped to absorb some retail outflows, which underlines the importance of sticky institutional money.
Fines -investors reported the following streams of 2 April:
- Fidelity Wise Origin Bitcoin Fund (FBTC) had a net inflow of $ 118.8 million.
- Ark 21Shares Bitcoin ETF (ARKB) saw the net inflow of $ 130.2 million.
- Grayswaarden Bitcoin Mini ETF (BTC) had a net inflow of $ 34.3 million.
- Bitwise Bitcoin ETF (BITB) registered the net inflow of $ 33.4 million.
Exclusive streams of BlackRock’s (BLK) Ishares Bitcoin Trust (IBIT), was the net entry on 2 April $ 334 million and turned $ 157.8 million out of April 1. A three -day outflow streak ended in particular on Wednesday.
However, the rebound in streams can be temporary. The Futures of Nasdaq 100 fell 759 points in the trade after hour in response to Trump’s rates.
Bitcoin Price Outlook: Important scenarios
On April 2, BTC fell by 3.07%, which partially reversed the 3.20% of Tuesday to close to $ 82,536.
Santiment commented on the reaction of the Crypto market on Trump’s rates:
“The mutual rates of Trump are intended to increase the government revenue and pressure Fairer Global Trade. But the fears of the trade war have led to immediate crypto volatility.”
Santiment added about cryptos role as digital gold:
“The starting point that Crypto is the alternative ‘digital gold’ has so far proven that it is enormously exaggerated. Instead, Bitcoin has reflected the S&P 500 so far, with very temporary cases of decoupling. And with regard to Altcoins, most have been much worse than BTC.”
Regarding possible results, Santiment stated:
“So how crypto markets are affected, will probably depend on the world’s reaction now that the US has made their rumors of civil servants. If other countries call Trump’s bluff and start a trade war, there will undoubtedly be some long-term pain that both the stock and the crypto markets have seen in the entire world.
BTC Potential Price Scenarios include:
- Bearish scenario: trade delay, ETF outflows or opposition against the Bitcoin ACT can drag BTC to $ 70,000.
- Bullish scenario: global tariff reductions, two -part crypto support and persistent ETF inflow can increase BTC to $ 109,312.