The Daily: Bitcoin Hits Yearly Low Amid Selloff, ETFs See Over Half a Billion Dollars in Outflows, and More

Bitcoin and major cryptocurrencies continued to fall on Tuesday as concerns about President Trump’s new tariffs on Canada and Mexico gripped the market.

U.S.-based Bitcoin ETFs saw $539 million in outflows on Monday alone, with Fidelity’s (FBTC) fund accounting for $247 million, marking the fifth-largest outflow on record.

Bitcoin Hits Yearly Low

Bitcoin
BTC -3.66%
fell more than 8% in the past 24 hours, falling below $86,000 at one point. Other major coins like ETH, XRP, and SOL were not spared from the selloff, falling more than 10%. The GMCI 30 Index, which represents the top 30 cryptocurrencies, fell 9.6% on the day.

The price drop is believed to be partly due to Trump's announcement of tariffs on Canada and Mexico after the current 30-day suspension expires. This has caused a wave of risk-off not only in traditional markets but also in the crypto market.

The Fear and Greed Index, an indicator that analyzes social media activity, price trends and market volatility, also fell to a five-month low of 25.

Geoffrey Kendrick, global head of digital asset research at Standard Chartered, said that lower US Treasury yields could benefit Bitcoin in the medium term. Bernstein analysts maintain their prediction of Bitcoin hitting $200,000 by the end of 2025.

Bitcoin ETFs See Over Half a Billion Dollars in Outflows

Bitcoin spot ETFs in the United States saw $539 million in outflows on Monday, led by Fidelity’s FBTC fund with $247 million. Total outflows from Bitcoin ETFs over the past five days reached $1.1 billion, although the total net capital remained above $39 billion.

Ethereum ETFs also saw outflows, with $78 million on Monday from BlackRock’s ETHA.

David Foley, co-managing partner at the Bitcoin Opportunity Fund, said the outflows were not unexpected and were fairly controlled after the strong growth in November and December last year.

Bitwise Raises $70 Million

Bitwise, the issuer of a spot Bitcoin ETF, announced that it has raised $70 million from investors including Electric Capital, MassMutual, and Haun Ventures. The company plans to expand its crypto asset management operations, which now has more than $12 billion in assets under management.

Ethereum Foundation’s Aya Miyaguchi Moves to Chair

Aya Miyaguchi, CEO of the Ethereum Foundation, will assume the role of Chair of the organization. The decision was made after more than a year of consideration, and Miyaguchi will continue to support the Ethereum Foundation’s community development and institutional relationships in her new role.

Ethereum co-founder Vitalik Buterin praised Miyaguchi’s achievements and said that EF is working to improve its leadership structure.

FTT Spikes After Sam Bankman-Fried Returns to X

Former FTX CEO Sam Bankman-Fried posted to X for the first time since January 2023, sending the FTT token briefly soaring more than 29% before returning.

Bankman-Fried is currently serving a 25-year prison sentence for defrauding investors and is seeking a pardon from President Trump.

In the Next 24 Hours

US mortgage data is due out at 7 a.m. ET on Wednesday, along with speeches from FOMC members Thomas Barkin and Raphael Bostic at 8:30 a.m. and 12 p.m.