After a rocky weekend marked by large ETF outflows and Donald Trump’s new tariffs, the cryptocurrency market is attempting to regain its foothold. While bitcoin remains around $115,000, XRP is showing relative strength. Investors remain nervous, but early buying suggests that a possible rebound is already underway.
How did ETF outflows affect Bitcoin and Ether?
The cryptocurrency market began the week on a cautious but steady note, following one of its most volatile periods in months. Last Thursday and Friday, nearly $1 billion was pulled from bitcoin ETFs and another $152 million from ether ETFs, marking the largest outflows since early 2025. The exit ended ether’s 20-day streak of daily inflows, dragging bitcoin down to nearly $114,000 before recovering slightly.
These massive outflows alarmed investors, especially since ETF buyers had previously been a key source of demand. Bitcoin ETFs alone had fueled the asset’s recent rally above $120,000. Their abrupt withdrawal raised concerns that the bullish trend might be stalling.
What role did Trump’s tariffs play in the cryptocurrency price drop?
Adding fuel to the fire, US President Donald Trump announced new tariffs on Asia and Europe. The news reverberated throughout global markets, pushing investors toward safer assets and away from high-risk bets such as cryptocurrency. Market analysts linked the crypto drop directly to these geopolitical shocks, observing a sharp shift in sentiment.
“The dip was driven by concerns over Trump’s tariff stance and the Fed’s signal that it’s not keen to cut rates soon,” said Jeff Mei, CEO of BTSE. Despite the fears, Mei noted that early dip-buying activity suggested that the panic was already subsiding.
Do buyers return to the market?
As Monday trading began in Asia, signs of stabilization emerged. Bitcoin climbed to approximately $114,500, remaining within its support range. Ether reclaimed the $3,550 level, which eased some concerns. XRP, meanwhile, led broader gains, outperforming both BTC and ETH on the day.
Even outside of cryptocurrency, global markets indicated a relief bounce. U.S. stock futures rose after a disappointing jobs report rekindled hopes for a more dovish Federal Reserve. The MSCI Asia Pacific Index recovered its early losses, and bond yields edged higher. Oil fell slightly after OPEC ended its recent production boost.
Early week action indicates that the crypto market may have recovered from the sell-off caused by ETFs and tariffs, though it is still far from fully recovered. Nonetheless, with ETF buyers largely absent, confidence remains fragile, and any real rally will almost certainly be dependent on renewed institutional demand.
Also read: Are Corporations Hoarding Ethereum? 550k ETH Acquired in a Month Sparks Supply Shock Concerns
