This week, the cryptocurrency market experienced significant fluctuations, as macroeconomic factors and regulatory developments influenced investor sentiment. Both Bitcoin (BTC) and Ethereum (ETH) demonstrated resilience amid broader market volatility.
Bitcoin’s price went up by approximately 3.35% in the last seven days, set at $84,299 by the end of Thursday morning. Ethereum also faced volatility at the end of last week but ended up stabilized around $1,591 with a 0.29% raise during the week.
The broader crypto scenario has seen significant outflows, with investors withdrawing $326 million from Bitcoin ETFs last week (April 10) as Trump’s tariffs take effect across global markets. The 104% duty on Chinese electric vehicles sparked fears of a larger trade war, pushing investors to reduce risk within their portfolios.
The move marked the largest single-day outflow since March and hit BlackRock’s IBIT fund particularly hard, which alone lost $253 million. Analysts attributed the flight to safety to heightened geopolitical tensions and the appeal of more stable assets in an unpredictable macroeconomic landscape.
Watchdogs
In Europe, regulatory bodies are asking for a cautious approach around crypto. The European Insurance and Occupational Pensions Authority (EIOPA) has proposed imposing 100% capital requirements on insurers holding cryptocurrencies, aiming to discourage such holdings due to associated risks like price volatility and low liquidity.
At the end of last month, the European Securities and Markets Authority (ESMA) also released updated guidelines urging investment firms to clearly communicate crypto asset risks to retail clients and to limit exposure on balance sheets unless strictly justified. The stance reflects growing concern in the eurozone over crypto contagion risk in traditional markets.
Growing Market
In the US, the cryptocurrency market is experiencing growth in ETF offerings. State Street forecasts that cryptocurrency ETFs will surpass the combined assets of precious metal ETFs in North America by the end of the year, positioning them as the third-largest asset class in the $15 trillion ETF industry.
At the same time, 21Shares platform launched the world’s first fully-backed Dogecoin ETP on the SIX Swiss Exchange, in partnership with the Dogecoin Foundation. While still seen as a meme token by many, Dogecoin’s institutional debut is a sign of the broadening investor interest and of crypto’s ongoing shift to a mainstream product.
