The Bitcoin (BTC) SPOT Exchange Trade Fund (ETF) has faced a significant pressure in uncertainty caused by continuous global trade war. According to the FARSIDE Investors data, this ETF has experienced a total of $ 595 million in a total of $ 595 million between March 28 and April 8. In particular, even after most of the US import tariffs were temporarily released on April 9, the funds still had a net leak of $ 127 million.
This situation questioned merchants to increase the trust between ETF investors to the reason for continuous leaks and $ 82,000 in Bitcoin’s rally on April 9.
Spot Bitcoin ETF pure flow. Source: FARSIDE Investors
Corporate credit risk can lead to investors from BTC.
One factor that contributes to the decrease in interest is to increase the likelihood of economic recession. Lazard Asset Management GLOBAL Fixed Income Head Michael Weidner said in Reuters, “The liquidity of the credit has been built.It is essentially, investors are converting to a safer asset, such as government bonds and cash stakes, and ultimately leading to a credit crisis.
Credit crunches have declined sharply, reducing business investment and consumer spending. As the risk of borrowers increases, credit supply can be limited independently, which can occur regardless of the US financial yield.
RW Baird strategist Ross Mayfield pointed out that even if the US Federal Reserve Bank decided to reduce interest rates with efforts to stabilize the turbulent market, the company’s slogan could be short.
Mayfield said: “In slander environments due to tariffs, we can see that investment rating and high -profit company borrowers suffer from rising debt costs.” Despite the 10 -year US financial yield remaining compared to last month, investor appetite for corporate debt is still weak.
Ice Bank of America Corporate Index option adjustment spread. Source: TradingView / COINTELEGRAPH
Dan Krieter, a fixed -income strategy director of BMO Capital Markets, said in Reuters that the company’s bond spread has expanded for up to one week after the local bank crisis in March 2023. Corporate bond spreads reflect additional risk investors for the company by measuring the difference in interest rates between the company and the government.
relevant: Bitwise doubles the price of $ 200K Bitcoin in the midst of trade tensions.
Trade wars take the central stage by limiting investors’ interest in BTC.
Investors are concerned that even if the US Federal Reserve Bank cuts interest rates, it may not be enough to restore trust in the economy. This feelings also explains why the US consumer price index (CPI) in March has a positive impact on the stock market. RSM’s chief economist, Joe Brusuelas, said, “This is the last print that we can see before we get inflation due to tariffs.
Merchants appear to be waiting for stabilization in the corporate bond market before they recover from the inflow of Bitcoin ETF. As long as the risk of economic downturn increases, investors will prefer safer assets, such as government bonds and cash stakes. Violation of this correlation requires a change in perception of Bitcoin’s fixed monetary policy and censorship resistance. However, potential catalysts for such changes are unclear and can take several months or years.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.