Bitcoin ETFs Slam on Brakes as Economic Jitters and Trump Tariffs Stir Up Stagflation Fears

Inflows Plummet Amid Market Uncertainty

Hold onto your hats, crypto fans! U.S. spot Bitcoin ETFs hit the brakes last week, with inflows screeching to a halt thanks to investors freaking out over some seriously weak U.S. economic data and Trump's latest tariff bombshells. The air is thick with stagflation fears, and it's got everyone on edge.

Numbers Don't Lie: A Sharp Decline in Inflows

According to the data wizards at SoSoValue, Bitcoin ETFs only managed to pull in $1.81 billion last week. That's a whopping 40% drop from the $3.06 billion they raked in the week before. Ouch!

Who's Up, Who's Down?

Most of the cash last week flowed into BlackRock's IBIT, which gobbled up a staggering $2.48 billion. But it wasn't all sunshine and rainbows. Funds like Grayscale's BTC, VanEck's HODL, and Invesco's BTCO saw smaller inflows, while ARK's ARKB bled out $457.6 million, and Fidelity's FBTC lost $201.1 million. Even Grayscale's GBTC and Bitwise's BITB couldn't escape the redemptions. The rest? Flat as a pancake.

April Showers Bring... More Money?

Despite last week's slowdown, April was still a blockbuster month for Bitcoin ETFs, with nearly $3 billion pouring in. That's a wild turnaround after two months of outflows that sucked out over $4.3 billion. Looks like the big dogs are back in the game!

Ethereum ETFs Feel the Heat Too

It's not just Bitcoin feeling the pinch. Ethereum ETFs saw their net inflows drop to $106.75 million last week from $157 million the week before. The heat is on!

Economic Data Throws a Curveball

What really sent the markets into a tailspin was the April ADP jobs report, which came in way below expectations. It was the weakest result since July 2024, and it's got everyone sweating. And if that wasn't enough, the first estimate for Q1 GDP went negative, despite earlier rosy forecasts. Blame it on the surge in imports as businesses scrambled to stock up before Trump's new tariffs hit the fan, putting even more pressure on the economy.

Stagflation Fears and Fed Rate Cuts

These tariff worries are fueling the fire of stagflation fears, a nasty combo of weak growth and stubborn inflation. Investors are biting their nails, wondering when or if the Federal Reserve will cut rates to ease the pain.

Trump's Trade Talk Tease

Earlier, Trump's claims of trade talks with countries like China briefly lifted spirits, sending Bitcoin soaring to a weekly high of $97,800. It was a brief moment of relief amid the tariff chaos, but the gains vanished as fast as they came when inflation data reignited those stagflation fears.

Bitcoin's Price Stalls as All Eyes Turn to the Fed

As of Monday, Bitcoin's price recovery hit a wall, trading between $93,500 and $96,000. Now, all eyes are on the upcoming Federal Open Market Committee (FOMC) interest rate decision. Will they keep rates steady at 4.5%? With inflation still running hot, it's anyone's guess.