Bitcoin (BTC) Stabilizes After Another Day of Heavy Spot ETF Outflows

Bitcoin BTC/USD has stabilized in Thursday morning trading, following another day of heavy spot ETF outflows on Wednesday.

Bitcoin (BTC/USD) price stabilized on Thursday morning, following another day of heavy spot ETF outflows and President Trump’s threats of new tariffs on the European Union pushed the crypto market further down.

What Happened: The apex crypto recovered slightly, trading around the $86,500 mark at press time, showing a 1.8% decrease over the past 24 hours. However, it showed signs of stabilization after slipping below the $84,000 level on Wednesday.

Spot ETFs saw another round of strong outflows, with BlackRock (NYSE:BLK)’s iShares Bitcoin Trust (NYSE:IBIT) recording its largest single-day outflow.

According to SoSoValue, IBIT saw record net outflows of $418.1 million on Wednesday, surpassing its previous record of $332.6 million set on Jan. 2. In total, there were net outflows of $754.54 million on Wednesday.

This outflow is part of a larger trend, with U.S. spot Bitcoin ETFs experiencing a seven-day negative streak that has amounted to nearly $3 billion in outflows.

Despite the recent outflows, IBIT remains the largest U.S. spot Bitcoin ETF, with over $40.2 billion in cumulative net inflows and $51.6 billion in assets under management. The fund also continues to dominate trading volume, accounting for 72% of Wednesday’s $5.7 billion in trading activity across all spot Bitcoin ETFs.

Why It Matters: The crypto market’s downturn has been exacerbated by President Trump’s remarks threatening 25% tariffs on the European Union. As reported by the Financial Times, Trump stated that a decision has been made and will be announced “very soon,” leading to increased market uncertainty and a risk-off sentiment.

In response to the market volatility, 21Shares Crypto Research Strategist Matt Mena highlighted potential positive catalysts that could reverse the trend.

Mena told The Block, “A positive regulatory tailwind, combined with strong Nvidia earnings — which signal continued AI-driven demand and boost overall risk sentiment — along with positive PCE inflation numbers this Friday, could create the perfect macro environment for bitcoin to not only reclaim its previous highs but potentially push beyond $150,000 as institutional and retail confidence surges.”

Nvidia reported excellent figures in its Wednesday earnings report, with fourth-quarter revenue of $39.3 billion marking an eight-fold increase compared to 2020.

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