Spot Bitcoin (BTC) exchange-traded funds (ETFs) are seeing steady outflows as concerns about tariffs and stagflation resurface and grip financial markets.
U.S.-listed Bitcoin ETFs have recorded four consecutive days of outflows following a weak jobs report on August 1.
The 11 U.S.-based ETFs registered a cumulative net outflow of $196 million U.S. on August 5 alone, according to market data.
The current outflows represent the longest such streak since April of this year when U.S. president Donald Trump’s tariffs tanked equity markets and roiled the bond market.
Fear has returned to markets after the July labour force survey showed a sharp slowdown in the American jobs market.
Also, the latest U.S. ISM Non-Manufacturing data showed tariff-driven inflation, employment weakness, and trade disruptions, all pointing to potential stagflation in America.
Stagflation is widely viewed as the worst possible outcome for risk assets such as cryptocurrencies.
Bitcoin, the largest crypto by market value, is now trading at $114,000 U.S., down from as high as $123,000 U.S. in mid-July amid heightened worries about the U.S. economy.
However, bets that the U.S. Federal Reserve will cut interest rates in September have risen sharply since the poor jobs data was released.
Futures traders are now betting 89% that the Fed cuts rates in September, up from 40% previously. Expectations are also growing for the Fed to cut rates by 1% before the end of 2025.
BTC has risen 22% so far this year.
