Bitcoin ETF Outflows Accelerate..."Trump Expectations Vanished"

# Bitcoin ETF Outflows Continue as Market Sentiment Wavers As outflows from Bitcoin exchange-traded funds (ETFs) persist, investment sentiment in the cryptocurrency market is deteriorating. Despite former President Donald Trump proposing to include Bitcoin and Ethereum (ETH), among other cryptocurrencies, as national strategic assets, the market reaction has been tepid. According to The Block's data on the 11th (local time), the Basis, which measures the expected return on Binance's Bitcoin futures market, briefly rebounded following Trump’s announcement, only to reverse course and decline shortly thereafter. This indicates that investors remain cautious. In the perpetual futures market, often utilized by international investors, sentiment has contracted, with funding rates hitting their lowest level since September 2024. Market anxiety is further indicated by the growing number of short positions. In the ETF market, significant outflows are evident as well. Data from CoinGlass shows record-breaking outflows from Bitcoin exchange-traded products (ETP) for seven consecutive days, underscoring increasing risk aversion among investors. Even cryptocurrency investors, typically noted for their high tolerance for volatility, are maintaining a wait-and-see approach amid the early policy moves of Trump’s second administration. Previously, Trump's pro-cryptocurrency policies buoyed Bitcoin's price, but recent tariff policies and geopolitical uncertainties have emerged as market destabilizers. Joshua Lim, Co-Head of Global Markets at FalconX, remarked, "The announcement of a Bitcoin stockpiling strategy has removed one positive catalyst the industry might have hoped for," adding that "the market is currently more sensitive to macroeconomic risk factors." Hayden Hughes, CEO of Evergreen Growth, also commented, “While the market appears to react negatively to the Bitcoin stockpiling announcement, it is likely an overreaction,” noting that “the market is currently excessively oversold.” # Strategy-related ETFs Plummet; Bitcoin's $70,000 Support Level in Focus The downturn in the cryptocurrency market has heavily impacted related ETFs. Leveraged ETFs based on MicroStrategy (formerly MicroStrategy) fell more than 30% in a single day, a symptom of heightened risk aversion driven by increasing market uncertainties. In tandem with this trend, Bitcoin prices are also volatile. As of 1:40 PM (Korean time) on the 12th, Bitcoin is trading at $81,700. Hughes projected, "Bitcoin is likely to form strong support at $73,000 and $70,000," foreseeing "robust buying interest at these price levels." As market uncertainty persists, investors are closely monitoring the detailed cryptocurrency policies of the Trump administration and global macroeconomic trends. It remains to be seen whether Bitcoin's price movement can restore market confidence.