₿itcoin ETFs Flourish as Trump Halts Tariffs 🎉🇨🇦Mexico & 🇨🇦Canada Breathe Relief!

Dear reader, let us take you through the latest developments in the realm of ₿itcoin, where the exchange-traded funds (ETFs) in the grand United States have found themselves in a most favourable position. It appears that His Excellency President Donald Trump, in his infinite wisdom, has decided to stay his hand on imposing tariffs on our dear neighbours to the north and south, Canada and Mexico. A month’s reprieve has been granted, leading to a most delightful resurgence in net inflows for these ₿itcoin ETFs.

Per the records kept by the esteemed Farside Investors, a sum total of $340.7 million was added to the coffers of these 12 spot ₿itcoin ETFs on the fourth of this month. A stark contrast to the previous day’s outflows, which amounted to $234.4 million in net redemptions. The market, it seems, is as fickle as the heart of a debutante at a ball.

BlackRock’s IBIT leads the dance with a staggering $249 million inflow, breaking its silence of the previous day. Since its inception, the spot ₿itcoin has welcomed $40.7 billion in inflows. ARK and 21 Shares’ ARKB follow closely behind with $56.1 million in inflows. It is a truth universally acknowledged that a single man in possession of good fortune must be in want of a ₿itcoin ETF.

Grayscale’s GBTC and Bitwise’s BITB also join the merry dance, with $19.5 million and $16.1 million inflows respectively. The remaining seven ETFs, however, remain wallflowers, reporting neither inflows nor outflows. Perhaps they await the next waltz?

The revival of inflows is attributed to President Trump’s agreement with the leaders of Mexico and Canada to suspend the contentious 25% tariffs for a month. An executive order for a sovereign wealth fund adds fuel to the fire, igniting whispers within the crypto community of the U.S. potentially acquiring ₿itcoin. Oh, what a tangled web we weave!

Following this news, ₿itcoin briefly reclaimed the $100,000 milestone, while Ethereum, Solana, XRP, and Dogecoin joined the celebration with significant gains. A sign, perhaps, of a bullish resurgence in the crypto world. Yet, one must remember, dear reader, that with every ball comes an after-party. In this case, a market-wide decline led to over $2 billion in liquidations in the crypto derivatives market.

At the time of writing, ₿itcoin (BTC) traded at $98,070, a 1.3% decline from the previous day. The market, ever so sensitive, shed over $500 billion on the third of this month, reacting to the tariff announcement. But fear not, for as the Bard would say, “All’s well that ends well.”

Matt Mena, a crypto research strategist at 21Shares, offers a silver lining amidst the storm. While the tariffs may cause short-term volatility, they could contribute to a longer-term shift that ultimately favours ₿itcoin. A weaker dollar, lower Treasury yields, and rising global liquidity could act as catalysts for the next major rally, solidifying ₿itcoin’s position as a hedge against fiat debasement. Ah, the sweet music of economics!

Historically, February has proven a friend to ₿itcoin, boasting positive returns in 12 of the last 14 years, with an average return of 15.66%. Mena suggests that this period of volatility may be setting the stage for ₿itcoin’s next grand entrance, with macroeconomic conditions aligning for a potential breach of previous all-time highs and consolidation within the “$150k-$200k range.” A thrilling prospect indeed!

2025-02-05 10:23

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