Bitcoin ETFs Surge as Trump's Fed Threats Ignite Market Fireworks!

Record-Breaking Inflows Amid Political and Economic Tensions

Holy smokes! Spot Bitcoin ETFs in the U.S. just exploded with their highest daily inflows in three months, all thanks to a wild risk-on vibe after President Donald Trump threatened to give Federal Reserve chair Jerome Powell the boot!

Get this: data from SoSoValue shows that on April 21, the 12 spot Bitcoin ETFs raked in a whopping $381.4 million in net inflows. That's over 250% more than the day before and the biggest cash grab since January 30!

Leading the charge? ARK 21Shares' ARKB, snagging a cool $116.13 million, with Fidelity's FBTC hot on its heels at $87.61 million.

Bitwise's BITB and BlackRock's IBIT weren't far behind, pulling in $45.08 million and $41.62 million, while VanEck's HODL and Franklin Templeton's EZBC scooped up $11.72 million and $10.1 million, respectively.

Even Grayscale's GBTC and BTC funds got in on the action, adding $36.6 million and $32.55 million to the frenzy.

But hold up, while Bitcoin ETFs are partying, their Ethereum buddies are totally down in the dumps, continuing a bearish streak this week with $25.42 million in outflows. Ouch! That's after eight straight weeks of losses totaling nearly $910 million.

This cash tsunami followed last week's reversal of a two-week outflow streak, with $15.85 million in net additions showing that institutional investors are back in the game.

And guess what? This surge happened right as Trump went full blast on Powell again, ranting on Truth Social that his "termination can't come fast enough" after Powell's comments on delaying interest rate cuts. Trump's also hinting at wanting more aggressive monetary easing, with whispers that his team is looking into the legal ways to oust Powell.

Meanwhile, the U.S.-China trade war and inflation fears are sending gold prices through the roof, and Bitcoin's following suit. Investors are flocking to these assets as safe havens amidst the market madness.

U.S. markets reopened on April 21 after the Good Friday break, but the mood was still sour. The S&P 500 took a 2.4% nosedive, with the Nasdaq and Dow each dropping 2.5%. And the U.S. dollar? It's hitting multi-year lows against major currencies, pushing investors toward alternative assets.

Despite the stock market meltdown, crypto markets stayed strong over the weekend. Bitcoin kept climbing on Monday, blasting past $88,500 on Tuesday, and its market cap bounced back above $1.75 trillion for the first time since late March.

Gold's also going wild, surging past $3,450 an ounce during Asian trading on April 22, hitting back-to-back all-time highs as money flowed out of stocks.

Kadan Stadelmann, Komodo's Chief Technology Officer, told us that these inflows show a major shift in investor behavior as trust in traditional financial systems crumbles.

"Fiat currencies are a joke with no real value, and with the U.S. financial system falling apart, investors are diving into assets like Bitcoin," Stadelmann said.

He thinks Trump's push for aggressive rate cuts and his threats against Powell are stoking fears of monetary chaos, speeding up the loss of faith in the dollar.

"All of this is great for Bitcoin, which many see as a safe haven from the U.S. dollar, along with gold, other precious metals, and some crypto assets. That's why Bitcoin ETFs are seeing these massive inflows. Bitcoin's price is holding strong despite the trade war drama," he added.