Bitcoin ETF outflows continue as Powell’s rejection of rate cuts and high inflation trigger a pullback from institutional investors. However, the Ethereum ETF market performed well, showing strong confidence and investor appetite for buying the dip.
It may be alluring to suggest that high inflation will decrease investment across the entire crypto market, but other factors can overcome this bearish headwind.
Bitcoin ETFs Feel the Inflation
Since the SEC first approved Bitcoin ETFs in 2024, they’ve heralded a wave of integration between the crypto industry and traditional finance. In some ways, crypto has benefitted greatly, with BlackRock’s IBIT counting as one of the most successful ETFs ever. This market entanglement, however, can sometimes have a negative impact, as shown by recent outflows:
Yesterday, the Bitcoin ETF market saw $56.76 million in outflows, with $243 million in total outflows this week. This may seem surprising at first, considering that these funds were headed toward a dramatic recovery less than a month ago.
However, the BTC ETFs saw their first week of net outflows in 2025 last week, and outflows have since continued.
A few factors in the broader market help explain this phenomenon. Top-level analysts have predicted that US inflation and economic policies will have an outsized role on the crypto market, and that prediction is coming true. Yesterday,
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Author: Landon Manning