Markets Ignore Trump Tariffs With $2 Billion Flowing Into Crypto

Crypto inflows continue to maintain a positive trend in the previous week, with total inflows over three weeks reaching $5.5 billion.

This occurs against an increasingly optimistic market backdrop, with macroeconomic data contributing to creating advantages for pioneering cryptocurrencies.

Crypto inflows reach $2 billion in the previous week

The latest report from CoinShares shows crypto inflows reached $2 billion in the previous week, marking the third consecutive week of positive inflows.

The week before, crypto inflows reached $3.4 billion as investors shifted to digital assets due to their safety. Previously, inflows into digital asset investment products were $146 million, with XRP going against the trend.

In the previous week, Bitcoin was the main beneficiary, recording inflows up to $1.8 billion. Similarly, Ethereum had its second consecutive week of strong inflows, reaching $149 million. Meanwhile, other cryptocurrencies like Solana had smaller inflows, only $6 million.

CoinShares noted market optimism despite Trump's tariffs, attributing the bullish sentiment to positive US economic indicators in the previous week.

Specifically, the market ended the week optimistically, driven by strong employment data despite weak GDP figures. Headline GDP decreased by 0.3%, impacted by export decline due to US tariffs. However, core GDP, reflecting private sector strength, increased by 3.0%.

Partly, CoinShares researcher James Butterfill suggests this is due to businesses anticipating tariffs. Current futures markets predict 86 basis points (bps) of rate cuts in 2025, although strong payrolls (177k vs. 135k expected) and high core PCE inflation reduce the likelihood of FOMC rate cuts on Wednesday.

"We believe current data is likely insufficient to prompt the Federal Open Market Committee (FOMC) to cut rates at the upcoming Wednesday meeting," Butterfill wrote.

Service inflation shows weakness, suggesting cautious consumer behavior. Stocks and Bitcoin remain sensitive to tariff developments, with employers delaying job cuts.

Against this backdrop, digital asset investment products continue to show positive sentiment, with Bitcoin's momentum appearing positive, especially in the US.

"Our latest Digital Asset Management Survey reflects this developing sentiment: investor preference for Bitcoin has strengthened after the US election, with 63% of respondents currently holding it—a 15 percentage point increase since January. Digital asset allocation has risen to 1.8%, the highest in a year, driven by both price appreciation and improved sentiment. Institutional allocation has increased to an average of 2.5%," Butterfill explained.

However, despite improving Bitcoin sentiment, CoinShares emphasizes that both new and experienced investors continue to view volatility as their primary concern.

According to Butterfill, this indicates a persistent disconnection between perceived risk and actual market behavior.

Data from BeInCrypto shows BTC trading at $93,997 at the time of writing. It has decreased nearly 2% in the past 24 hours and has slipped below $94,000 on Monday.