The market is witnessing investors remove their funds from digital assets as these investments seem more dangerous to people during the intensifying global political turmoil and economic instability. The digital asset fund withdrawals have reached critical levels during the recent weeks. Since January 2024 bitcoin ETFs began trading in the U.S., this period has featured the longest continuous withdrawal period of $6.4 billion from all such funds with $5.4 billion specifically departing ETFs.
The Bitcoin price established a new low point which dropped below $83,000 after its value decreased by 21 percent throughout the past three months. The largest cryptocurrency is now trading at $84,492.57.
Read more: Bitcoin sinks as Trump’s strategic reserve disappoints markets
The CoinDesk 20 Index extended its losses further because it decreased by approximately 34.6 percent while spanning this timeframe. Various elements such as trading restrictions caused by tariffs and changes in monetary approaches have led investors to secure their wealth with safer assets while generating price instability in Bitcoin and its peer cryptocurrencies.
The backing that U.S. President Donald Trump gave to cryptocurrencies has failed to calm down investor concerns despite his endorsements including Bitcoin Strategic Reserve programs. The problem that seized Bitcoin assets would be stored in the Strategic Reserve did not improve market trust because the United States never committed to becoming a Bitcoin buyer through this initiative. Investors showed a substantial decline in their involvement with digital assets because of existing geopolitical tensions together with economic instability and insufficient helpful approaches.
