- Bitcoin ETFs recorded over $3 billion in inflows last week, the highest since December.
- Bitcoin climbed 14% after a 90-day tariff pause announcement, outperforming the S&P 500.
- Other cryptocurrencies like Ethereum, XRP, and Solana also posted gains but BTC led inflows.
Investor interest in Bitcoin is picking up again. Last week, Bitcoin exchange-traded funds (ETFs) recorded their largest inflows since December, with over $3 billion moving into the market. This rise in activity comes as broader financial markets respond to new developments around U.S. trade tariffs. While traditional assets have shown mixed reactions, Bitcoin’s steady climb suggests that more investors are considering it as a way to manage risk during uncertain times.
Bitcoin ETFs Record Largest Inflows Since December
Bitcoin ETFs attracted more than $3 billion in inflows last week, the highest since the end of last year. The renewed investor interest coincided with broader market movements following the U.S. administration’s developments around international trade tariffs. This surge highlights a notable shift in sentiment, positioning Bitcoin as an asset that investors turn to during periods of economic uncertainty.
Impact of Trump’s Tariff Announcements on Bitcoin and Traditional Markets
Earlier this month, President Trump announced a sweeping tariff policy that triggered a rapid downturn across financial markets. On April 2, the S&P 500 suffered a historic single-day loss, wiping out $2.5 trillion in market value. Investors responded by pulling funds from equities and cryptocurrencies alike, anticipating widespread disruptions in supply chains and potential inflation spikes. However, sentiment shifted after Trump authorized a 90-day pause on most tariffs, excluding China. Following this pause, the S&P 500 posted its largest single-day gain since 2008, while Bitcoin rebounded sharply, recording a 9% gain on April 9. Since that announcement, the S&P 500 has edged up by 1%, whereas Bitcoin has climbed 14%, significantly outperforming traditional equities.
BTC Outperforms Ethereum, XRP, and Solana
Bitcoin’s strong performance is not isolated. Other major cryptocurrencies also posted notable gains over the past week. Ethereum rose by 11%, XRP by 9%, and Solana by 8%. However, Bitcoin remains at the forefront, leading the recovery and drawing the highest capital inflows through ETFs. The data suggests a growing divergence between BTC and other asset classes. While traditional markets show modest recovery, Bitcoin’s robust movement reflects a deeper shift in investor behavior.
Bitcoin Viewed as a Safe Haven During Economic Uncertainty
James Butterfill, head of research at CoinShares, emphasized that Bitcoin’s recent price action illustrates its emerging role as a safe-haven asset. Unlike equities, which remain vulnerable to policy decisions and corporate earnings risks, BTC operates independently from government and central bank influence. This autonomy is increasingly attractive to investors seeking to shield their portfolios from external economic shocks. Butterfill highlighted that while equities struggle under the weight of tariffs and weakening earnings prospects, Bitcoin continues to thrive, drawing capital from those looking for alternatives to traditional financial assets.
Growing Divergence Between Bitcoin and Equities
The gap between Bitcoin’s performance and that of major stock indices is becoming more pronounced. Since Trump’s tariff pause, BTC’s 14% gain far exceeds the S&P 500’s 1% rise. This divergence is a clear indication that investors are reevaluating the role of Bitcoin within diversified portfolios. Rather than being seen solely as a speculative asset, BTC is increasingly regarded as a strategic allocation to hedge against market instability. The growing ETF inflows reinforce this trend, suggesting institutional and retail investors alike are acknowledging Bitcoin’s evolving place in global financial markets.
Bitcoin ETF Inflows and Broader Market Trends
The $3 billion inflow into Bitcoin ETFs is a strong signal of broader acceptance. This figure not only marks the largest weekly inflow since December but also underscores the maturity of BTC as an investment vehicle. ETFs provide regulated, accessible entry points for a wide range of investors, from individuals to large institutions.
Coupled with Bitcoin’s price appreciation, these inflows suggest growing confidence in its long-term value proposition, particularly during times when traditional markets are under pressure.
Conclusion
Bitcoin continues to demonstrate resilience and growing appeal as global markets adjust to economic and political shifts. With ETF inflows reaching levels not seen since December and BTC outperforming major stock indices, the cryptocurrency is solidifying its role as a preferred safe-haven asset. The ongoing divergence between BTC and traditional equities signals an important evolution in investor behavior, positioning Bitcoin as a core consideration in times of uncertainty.
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
