The evolving relationship between Bitcoin and traditional financial markets is under renewed pressure as global investors flee risk assets amid intensifying US trade tensions. US-listed spot Bitcoin ( BTC ) exchange-traded funds (ETFs) recorded their fourth consecutive day of outflows on April 8, with more than $326 million in net redemptions across products, according to data from Farside Investors. BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw the largest sell-off of over $252 million, its biggest daily outflow since Feb. 26. Bitcoin ETF flows, US dollars, millions. Source: Farside Investors The selling pressure follows US President Donald Trump’s April 2 announcement of sweeping reciprocal import tariffs , which triggered a historic $5 trillion wipeout in the S&P 500 over two days. Related: Bitcoin may rival gold as inflation hedge over next decade — Adam Back The delayed crypto market turbulence after the tariff-related sell-off in traditional markets highlights Bitcoin’s “evolving relationship with traditional markets,” according to Lennix Lai, global chief commercial officer at OKX exchange. Lai told Cointelegraph: “While falling 26% since January’s inauguration, Bitcoin’s relative resilience in the first two days following the tariff announcement — dropping 6% compared to Nasdaq’s 11% decline — suggests a nuanced dynamic emerging between crypto and conventional assets.” Bitcoin initially remained firmly above the $82,000 support level but plummeted below $75,000 on Sunday, April 6. BTC/USD, 1-year chart. Source: Cointelegraph Markets Pro Some industry leaders attributed Sunday’s sell-off to Bitcoin’s 24/7 liquidity mechanics , which made BTC the only large liquid asset available for de-risking over the weekend. Related: Bitcoin price can hit $250K in 2025 if Fed shifts to QE: Arthur Hayes Bitcoin remains tied to global liquidity conditions While there is an “encouraging sign” of a weakening correlation between Bitcoin and equities, Bitcoin’s price trajectory remains tied to global liquidity conditions, Lai said, adding: “Though I see early signs of divergence, I believe Bitcoin remains fundamentally tied to global liquidity conditions, warranting caution amid potential market stresses — whilst gold remains as a hedge against geopolitical instability.” “What’s most significant here isn’t just price action but Bitcoin’s growing conceptual influence — people increasingly view it as a valid strategic reserve asset for diversification in chaotic traditional markets,” Lai added. Other analysts also see the growing money supply as Bitcoin’s main catalyst . “Bitcoin trades solely based on the market expectation for the future supply of fiat,” according to Arthur Hayes , co-founder of BitMEX and chief investment officer of Maelstrom. Magazine: Bitcoin ATH sooner than expected? XRP may drop 40%, and more: Hodler’s Digest, March 23 – 29
