Bitcoin Drops to $84,200 as Trade Tensions and ETF Sell-Off Intensify

Bitcoin tumbled to a three-month low on Wednesday, shedding 4.4% to hit $84,200 as global trade concerns and massive ETF outflows sparked a broader market sell-off. Investor sentiment soured after U.S. President Donald Trump announced a 25% tariff on European Union goods, escalating fears of a global trade war. Additional tariffs on Mexico and Canada, set to take effect on April 2, further rattled risk-driven assets, including cryptocurrencies.

Bitcoin’s decline mirrored losses in U.S. stocks, with markets reacting to concerns over an economic slowdown following weak consumer sentiment data. Institutional investors also took profits amid the downturn, with spot Bitcoin ETFs recording near-record outflows of $1.01 billion on Tuesday. Fidelity Wise Origin Bitcoin Fund and BlackRock’s iShares Bitcoin Trust ETF led the exodus, losing $344.7 million and $164.4 million, respectively.

Standard Chartered’s Geoff Kendrick warned that the sell-off might not be over, noting that net ETF purchases since Trump’s election victory are now facing $1.3 billion in unrealized losses. The average purchase price since then is estimated at $97,000, adding pressure on Bitcoin’s price.

Despite Bitcoin’s slide, altcoins showed resilience. Ethereum rebounded 1.7% to $2,438.80, while XRP surged nearly 4% to $2.28. However, Solana, Polygon, Dogecoin, and $TRUMP struggled to recover.

With persistent ETF outflows and trade tensions escalating, Bitcoin’s near-term outlook remains uncertain, leaving investors wary of further declines.