Bitcoin Rebound Stalls as ETF Inflows Cool Amid U.S. Economic Uncertainty

Bitcoin's recent rebound has stalled, with prices steadying at $94,943.4 as of 01:09 ET (05:09 GMT) on Thursday. The cryptocurrency had rallied nearly 20% in April, recovering from annual lows around $70,000, driven by institutional buying and spot ETF inflows. However, ETF buying slowed this week, with major funds logging a small net outflow of $56.2 million on Wednesday.

Bitcoin's Rally Loses Momentum

Bitcoin's gains in April were fueled by large-scale buying from institutional investors, including Michael Saylor’s Strategy and spot ETFs. Data from SoSoValue revealed eight consecutive days of significant inflows through late April, but this momentum has cooled. The slowdown comes amid persistent concerns over U.S. trade tariffs and economic growth, which have dampened investor sentiment.

The U.S. economy unexpectedly contracted in the first quarter, according to softer-than-expected GDP data, adding to anxiety. While President Donald Trump's postponement of reciprocal tariffs provided some relief, the ongoing trade war with China continues to weigh on global economic outlooks.

Broader Crypto Market Performance

The broader crypto market has been mixed, with most altcoins treading water after strong gains in April. Ether, the second-largest cryptocurrency, rose 0.1% to $1,808.30, though it lagged Bitcoin's rally last month. XRP fell 1.7%, while Solana and Cardano saw movements within a 1% range.

Meme tokens also showed varied performance, with $TRUMP retaining most of its 50% surge from late April, while Dogecoin shed 0.4%. The speculative nature of cryptocurrencies continues to drive price movements, with sentiment playing a larger role than fundamental factors.

Expert Insight

The cooling of ETF inflows and mixed performance across the crypto market highlight the ongoing volatility and sensitivity to macroeconomic developments. As U.S. economic data and trade policies remain uncertain, Bitcoin and other cryptocurrencies may face further headwinds in the coming weeks. Investors should closely monitor sentiment shifts and economic indicators for potential market movements.