Market rally after Trump’s tariff pause drives Bitcoin volatility and ETF outflows

Market rally after Trump’s tariff pause is shaking up the crypto world in unexpected ways.

On Monday, the surprising pause on proposed trade tariffs led to a broad market uptick. Stocks surged. Risk assets, including crypto, saw renewed investor interest. But Bitcoin’s price action told a different story.

Instead of rallying with the rest, Bitcoin slipped slightly. Spot Bitcoin ETFs saw $127 million in net outflows on the same day. Investors are rebalancing their portfolios, possibly favoring traditional equities over digital assets in the short term. This suggests that macroeconomic signals are heavily influencing crypto flows.

Trading behavior is shifting. The rally sparked by Trump’s tariff announcement shows how political news can shake investor sentiment. While some might expect crypto to benefit from risk-on environments, the short-term data suggests a move away from Bitcoin exposure in regulated products like ETFs.

Tariff pause fuels traditional markets, but crypto reacts differently

The Grayscale Bitcoin Trust (GBTC) led the outflows with over $90 million. Even Fidelity and Ark Invest’s ETFs posted modest losses. Meanwhile, equity indexes like the S&P 500 hit fresh highs. It appears some investors are rotating capital out of crypto-linked assets to chase stock gains.

Crypto’s long-term narrative remains intact, but short-term trading is more volatile than ever. ETFs, designed for easier access, are now reflecting the fast-changing attitudes of both institutional and retail investors. Bitcoin’s decoupling from the traditional rally raises questions about investor confidence.

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Market rally after Trump’s tariff pause highlights investor indecision

Market rally after Trump’s tariff pause may appear bullish, but it complicates crypto’s position in financial portfolios. Some analysts argue the outflows are not bearish, but rather a reshuffling of risk. Bitcoin remains near key resistance levels, suggesting traders are not abandoning ship—just moving assets temporarily.

There’s also speculation that crypto-native investors are simply favoring direct Bitcoin purchases over ETFs. On-chain data shows stable wallet activity, hinting at accumulation rather than panic selling. Still, ETF outflows mark a notable shift in momentum.

As always, Bitcoin thrives on disruption. Tariff policy delays may bring short-term confusion, but they underline how sensitive markets are to politics. For crypto, this moment serves as a reminder: macro trends matter, but crypto often dances to its own rhythm.