Bitcoin Price Plummets to 3-Month Low Amid Global Trade Tensions and ETF Outflows

Bitcoin Price Drops to 3-Month Low

Bitcoin tumbled to a three-month low on Wednesday, falling 4.4% to $84,200.0, as global trade tensions and a major cryptocurrency exchange sparked a market-wide sell-off. The decline reflects heightened investor anxiety amid threats of new tariffs and economic uncertainty.

Global Trade Tensions Intensify

President Donald Trump's announcement of a 25% tariff on EU goods and delayed tariffs on Mexico and Canada reignited fears of a global trade war. These measures, coupled with concerns over a potential U.S. economic slowdown, have soured sentiment across risk assets, including cryptocurrencies and U.S. stocks.

Bitcoin ETFs See Record Outflows

U.S.-listed Bitcoin ETFs experienced near-record outflows, with $1.01 billion withdrawn on Tuesday. This marks the largest single-day outflow since March 2024. Fidelity's Wise Origin Bitcoin Fund and BlackRock's iShares Bitcoin Trust ETF saw significant withdrawals of $344.7 million and $164.4 million, respectively.

Standard Chartered warns that persistent outflows from spot Bitcoin ETFs could further pressure the cryptocurrency's price. Geoff Kendrick, Global Head of Digital Asset Research, noted that 10 of 12 spot Bitcoin funds saw net withdrawals, with ETF purchases since the U.S. election now sitting on losses of around $1.3 billion.

Broader Crypto Market Shows Mixed Performance

While Bitcoin struggled, other cryptocurrencies showed mixed results. Ethereum rose 1.7% to $2,438.80, and XRP gained nearly 4% to $2.28. However, altcoins like Solana, Polygon, and $TRUMP saw sharp declines, reflecting fragile market sentiment.

The cryptocurrency market remains volatile, with Bitcoin's price decline and ETF outflows signaling ongoing investor caution amid economic and geopolitical uncertainties.