Spot bitcoin ETFS View $ 772M outflow as investors are preparing for tariff -driven inflation

Bitcoin (Btc) Funds exchanged by the exchange (ETF) face significant pressure amid the uncertainty caused by the ongoing global trade war. Between March 28 and April 8, these ETFs experienced net outflows A total of $ 595 million, according to Farside’s investors data. It is noteworthy, even after most US import tariffs were temporarily raised on April 9, funds still recorded an additional $ 127 million in net outflows.

This situation has left entrepreneurs asking the reasons behind the ongoing flow and why the Bitcoin rally at $ 82,000 on April 9 failed to boost trust in ETF investors.

Corporate credit risk may drive investors to BTC

One factor that contributes to reduced interest is the rising possibility of an economic backbone. “What you can clearly observe is the liquidity on the edge of credit is dry,” Lazard Asset Management Global Fixed Income Co-Head Michael Weidner said Reuters. Essentially, investors are moving towards safer possessions such as government bonds and cash handling, a trend that can lead to a credit crunch.

A crunch crunch is a sharp decline in the availability of a loan, leading to reduced business investment and consumer spending. This can happen regardless of the US Treasury yield because the borrower’s increased risk of risk may be able to restrict the credit supply.

RW Baird strategist Ross Mayfield noted that even though the US Federal Reserve has decided to cut interest rates in an effort to stabilize the chaotic markets, any relief for companies may be short lived.

Mayfield reports: “In a stagflationary environment from tariffs, you will see both investment grades and high yields of corporate borrowings as their debt increases.” Despite the 10-year yield of the US treasury remaining flat compared to last month, the investor’s appetite for corporate debt remains weak.

Dan Krieter, director of Fixed Income Strategy in BMO Capital Markets, said Reuters spreading corporate bond have experienced their greatest one week expansion since Banking crisis in the region In March 2023. The corporate bond measured the difference in interest rates between corporate bonds and government bonds, reflecting additional risk investors when lending to companies.

Related: Bitwise doubles down to $ 200k bitcoin price prediction amidst the trading tension

The trade war takes the stage, limiting the investor’s interest in BTC

Investors remain concerned that even though the US Federal Reserve is cutting interest rates, it may not be enough to restore economic confidence. This emotion also explains why the US consumer price index (CPI) for March – at 2.8%, its slowest annual increase in four years – is up to date on the positive impact on stock markets. “This is the last clean printing we will see before we get the increase in tariff inflation,” Joe Brusuelas, RSM chief economist, said Finance of Yahoo.

Entrepreneurs will appear waiting for stabilizing the corporate bond market before regaining confidence in the Bitcoin ETF flowers. As long as the rising risks remain elevated, investors are likely to prefer safer possessions such as government bonds and cash holders. Destruction of this correlation will require a transfer of understanding toward Bitcoin Fixed financial policy and resistance to censorship. However, potential catalysts for such a change will remain unclear and may take months or even years.

This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.