Even though Donald Trump has threatened to raise tariffs, which has made the global markets shaky, Bitcoin is still close to $108,700.
While traditional investors pull back, crypto ETFs are seeing record inflows. But under the surface, signs of exhaustion suggest the market could be headed for a summer slowdown.
The president of the United States hinted at plans to raise import duties by as much as 50% because the US and the EU still can’t agree on tech rules.
Why is Bitcoin still going strong even though the world is in chaos?
The rhetoric caused U.S. equity futures to fall, drove copper futures lower in London, and sent Asian stocks lower for the third time in four sessions.
However, bitcoin stayed mostly unchanged, indicating that cryptocurrency investors are either ignoring the macro noise or believing that BTC is becoming more and more protected from international policy risk, according to some analysts.
Han Xu, Director at HashKey Capital, said in a Telegram message that “Bitcoin’s slight price drop from Trump’s tariff plans shows how strong the digital asset is and how confident long-term investors are in it.” “We are sure that this trend will continue, even though it is volatile in the short term.” But at these levels, there is clearly some hesitation.
Buyers are letting off steam quickly, according to Alex Kuptsikevich of FxPro. “The 50-day moving average is drawing dip buyers, but sellers are equally active as Bitcoin continues to decline near $110,000.”
He went on to say that although the total market capitalization was still up 1.8% for the week, it had dropped 0.6% over the last day to $3.35 trillion, indicating yet another “bout of indecision” at the top.
What’s fueling the ETF inflow surge?
Even with the ongoing inflows into crypto ETFs, that choppiness remains. Nearly $1 billion entered cryptocurrency funds last week, with over $790 million of that amount going into bitcoin, according to CoinShares, which reported net inflows for the 12th consecutive week.
$226 million was earned by Ether (ETH)-tracked products, $22 million by Solana’s SOL (SOL), and $11 million by XRP (XRP). The total amount of ETF assets under management has risen to $188 billion, the highest amount ever.
Is the crypto market losing steam?
There are indications of weariness beneath the hood, though. The Block claims that implied volatility and on-chain activity for Bitcoin have fallen to their lowest levels in almost two years.
Calling it a “summer lull,” Glassnode pointed to factors that could cause a sharper move if sentiment turns, such as collapsing trading volumes and a growing concentration of unrealized gains among long-term holders.
The market remains bullish as capital keeps moving away from the 200-day moving average.
So, for now, the crypto markets are in a strange holding pattern. Things are calm with Bitcoin and ETFs, but underneath, they feel sleepy.
Also read: Bit Mining Moves to Solana with 300 Million Dollar SOL Treasury
