Bitcoin ETFs experienced net outflows of $290 million last week, with Friday seeing the heaviest single-day exodus of $225.5 million. BlackRock's IBIT led the outflows, shedding $201.5 million on Friday alone. The shift reflects a broader 'risk-off' sentiment in global markets amid rising geopolitical tensions and macroeconomic pressures.
Market analysts attribute the outflows to escalating geopolitical risks, particularly following comments from President Donald Trump about potential actions against Iran. Without credible de-escalation, markets remain defensive, expecting more volatility ahead. Analysts also note that while Bitcoin has held up relatively well, it is not immune to the current sell-off trend.
The S&P 500's consecutive weekly losses and triple-digit oil prices fueling inflation fears have compounded market concerns. Fed rate hike expectations have increased, contrasting sharply with earlier projections for rate cuts. This environment has contributed to the overall risk-averse mood.
Despite the outflows, some experts highlight Bitcoin's relative strength compared to other asset classes. However, they caution against reading too much into weekly flow data, noting that basis trading by hedge funds can influence these figures.
Bitcoin is currently trading at $67,574, up 1.4% in the last 24 hours, after dipping into the $65,000 range earlier this week.