Bitcoin ETFs Saw Their Largest Inflows in Weeks as BTC Reclaimed Its Recent Losses and Achieved a New All-Time High of $111,000

Bitcoin ETFs saw their largest inflows in weeks as the underlying currency reclaimed its recent losses and achieved a new all-time high of $111,000 on Thursday.

Bitcoin ETFs saw their largest inflows in weeks as the underlying cryptocurrency reclaimed its recent losses and reached a new all-time high of $111,000 on Thursday. IBIT, the Bitcoin ETF issued by asset management giant BlackRock, saw an inflow of $877 million on Thursday, the largest single day inflow of any ETF in history, according to Eric Balchunas, an ETF analyst at Bloomberg.

“$IBIT was #1 among ALL ETFs in flows yesterday,” Balchunas wrote on X Friday morning. He attributed the buying action to excitement around Bitcoin's new all-time high, saying the achievement is "a byproduct of the ATH-induced feeding frenzy volume."

Bitcoin reached new highs after President Trump announced a reduction in tariffs on Chinese imports from 145% to 30%, a significant de-escalation of the looming trade war between the two nations. However, the cryptocurrency has since fallen to $108,000 on Friday as Trump threatened to impose additional tariffs on the European Union.

Financial markets were hit hard in early April when Trump announced a slew of markups on nearly all foreign imports in addition to a 10% baseline tariff. Following the announcement, investors pulled out of risky assets like Bitcoin and equities amid fears that the tariffs would increase inflation and disrupt global supply chains. However, as Bitcoin fell alongside a historic stock market meltdown, Trump authorized a 90-day pause on most tariffs—keeping in place ones on Chinese imports and the 10% baseline levy—as he negotiated with foreign nations.

Since then, the stock market has remained volatile as Trump engaged in trade talks with China, the United Kingdom, the European Union, and others, but Bitcoin has continued to steadily rise. Some crypto industry leaders have argued that Bitcoin's divergence from the stock market is a testament to its value as a cryptocurrency detached from inflation because it is not governed by a centralized entity.

"Bitcoin is an excellent inflation hedge, much like gold, and investors are quickly realizing this fact," Matt Hougan, chief investment officer at ETF issuer Bitwise, told Fortune. "We are seeing a massive shift in the market as investors are rushing to Bitcoin ETFs to protect their portfolios against inflation and other macroeconomic factors that traditional fiat-currencies are susceptible to."

"The beauty of Bitcoin is that it's decentralized and isn't tied to any government or central bank, making it an ideal hedge against fiat currency debasement at the exact moment the world is waking up to the need for that hedge," Hougan added.