Crypto ETPs shed $240M last week amid US trade tariffs — CoinShares

Crypto ETPs Losing $240M Amid US Trade Tariffs

The latest report from CoinShares has revealed a significant drop in the value of crypto ETPs (Exchange Traded Products). A whopping $240 million was shed last week as the United States imposed trade tariffs, causing a ripple effect across the global economy and hitting the crypto market hard. This event has further underscored the vulnerability of cryptocurrency to governmental policy changes and global economic shifts.

Impact on the Crypto Market

Any changes in trade tariffs cause fluctuations in markets, but it seems the crypto market felt the impact more significantly. Increased tariffs create uncertainty in economic outlook, which often drives investors towards more stable assets, away from the risks of cryptocurrencies. This massive outflow from crypto ETPs is a testament to the nervous investor sentiment surrounding the ongoing trade disputes.

Bitcoin and the Fear and Greed Index

Data from bitcoinmeter.io shows that the Fear and Greed Index for Bitcoin has been swaying towards the 'Fear' side. This index measures the sentiment around Bitcoin, with 'Fear' indicating a bearish market and 'Greed' suggesting a bullish one. It is not surprising that the index leans towards 'Fear' in light of such significant market shifts.

Looking Forward

While the current market sentiment might be fearful, it is important to remember that the crypto market is inherently volatile and such fluctuations are not unusual. In fact, they could potentially provide opportunities for investors who understand the market well. As always, it is crucial to stay informed and make investment decisions based on thorough research and understanding of the market.

Disclaimer: This content is for informational purposes only and not financial advice. Always conduct your own research and consult with a professional before making any financial decisions.