Cryptocurrency Markets Disregard Trump Tariffs, Recording $2 Billion in Inflows
Last week saw a streak of positive crypto inflows extend, totaling an impressive $5.5 billion over the past three weeks. This bullish trend is happening as the market gains optimism, with a variety of economic indicators adding to the growing list of tailwinds for the pioneering cryptocurrency.
In the latest report by CoinShares, crypto inflows reached a whopping $2 billion last week. This marks the third consecutive week of positive flows, with the week prior seeing inflows of $3.4 billion as investors turned to digital assets for their haven status. Prior to that, inflows into digital asset investment products amounted to just $146 million, with XRP going against the grain.
Last week, Bitcoin gained the most with inflows of up to $1.8 billion. Ethereum followed closely with solid inflows of $149 million. Meanwhile, peers like Solana saw minor inflows of $6 million.
CoinShares attributes this optimism in the market to various factors, including Trump's tariffs and positive US economic indicators. Specifically, they point to strong employment data, despite earlier weak GDP figures. Headline GDP fell 0.3%, impacted by export declines due to the tariffs, but core GDP, reflecting the private sector's strength, rose 3.0%.
Futures markets now expect 86 basis points of rate cuts in 2025, though strong payrolls and elevated core PCE inflation reduce the likelihood of an FOMC rate cut on Wednesday. In his research, CoinShares' James Butterfill suggests that the current data is likely insufficient to prompt the Federal Open Market Committee (FOMC) to cut rates at next Wednesday's meeting.
Equities and Bitcoin remain sensitive to tariff developments. Despite this, digital asset investment products continue to show a positive sentiment, with Bitcoin's momentum looking particularly strong in the US. In the latest Digital Asset Manager Fund Survey, investor preference for Bitcoin has strengthened post-US election, with 63% of respondents now holding it—a 15 percentage point increase since January. Digital asset weightings have risen to 1.8%, the highest level in a year, driven by both price appreciation and improving sentiment.
However, despite the improving sentiment, volatility continues to be a top concern for both new and seasoned investors, highlighting a disconnect between perceived risk and actual market behavior. As of this writing, BTC was trading for $93,997, having slipped below the $94,000 range on Monday.
Unlock your trading potential with websites like TonTrader, dYdX, Arkham, BingX, and HTX. Each offers commission-free bonuses, a diverse futures selection, and user-friendly platforms to boost your trades.
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. However, readers are advised to verify facts independently and consult with a professional before making decisions based on this content. Keep in mind that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
[1] CoinShares (2021). Digital Asset Fund Flows Week 16.[2] Di Martino, M. (2021). Crypto inflows reach $2bn in third straight week of positive flows.[3] Izaguirre, M. (2021). Crypto and owning a home? Give it a shot, says UBS report.
- Last week's impressive $2 billion in crypto inflows, as reported by CoinShares, marked the third consecutive week of positive flows, indicating a growing optimism in the market.
- Bitcoin led the pack last week, with inflows of up to $1.8 billion, demonstrating a strong preference among investors seeking digital assets for their haven status.
- Ethereum followed closely behind Bitcoin, with solid inflows of $149 million, while peers like Solana saw minor inflows of $6 million.
- The optimism in the market is attributed to various factors, including Trump's tariffs, positive US economic indicators, and improving sentiment towards Bitcoin, as suggested by CoinShares' James Butterfill.
- Despite the volatility concerns, digital asset investment products continue to show a positive sentiment, with Bitcoin's momentum particularly strong in the US, according to a recent Digital Asset Manager Fund Survey.
- To unlock your trading potential, consider using websites like TonTrader, dYdX, Arkham, BingX, and HTX, which offer commission-free bonuses, a diverse futures selection, and user-friendly platforms to boost your trades.
