Market Turmoil: Trump's Tariffs and GDP Data Rattle Crypto and ETFs

By Omkar Godbole (All times ET unless stated otherwise) The past 24 hours have been unfavorable for cryptocurrency enthusiasts, with the CoinDesk 20 Index experiencing a 5% decline and leading coins such as bitcoin and ether dropping nearly 2%. Notable altcoins like XRP, BNB, and SOL suffered even greater losses, while ASTR, the native token of Aster DEX, fell 4% due to unusual price movements in the XPL-USDT perpetual trading pair. However, a few coins, including MNT, CRO, KAS, OKB, and XMR, saw gains of approximately 1%. This downturn coincides with a strengthening US dollar, driven by Thursday's US GDP and jobless claims data, which has led to bearish market flow dynamics. Analysts at BRN noted that "ETF behavior shifted from primarily absorbing supply to becoming a net seller this week." Bitcoin ETFs recorded $258 million in outflows, while Ethereum ETFs saw $251 million in outflows, marking four consecutive days of losses for ETH funds. Whales have also become net sellers, offloading 147,000 BTC since August 21, the largest amount since the bull cycle began in early 2023, according to CryptoQuant. Bitunix exchange analysts warned that President Donald Trump's tariff announcements have increased market uncertainty, with sentiment fluctuating between concerns of rising inflation and slowing growth. Trump announced tariffs of up to 100% on trucks, furniture, and pharmaceuticals, effective October 1. The Fed's preferred inflation gauge, the core personal consumption expenditure, is scheduled for release later today, with a projected 2.9% year-over-year increase in August, matching July's growth. A softer-than-expected print could potentially temper the dollar's rally, providing support for bitcoin and the broader crypto market. Traders should remain cautious about regulatory developments related to digital asset treasuries, as a recent report cited US regulators' concerns about unusual trading volumes and stock price volatility in over 200 companies linked to crypto treasury strategies. Regulatory pressure on these treasuries could accelerate market sell-offs. Additionally, geopolitical developments warrant attention, as reports of Russia's aerial incursions in Europe have emerged. WTI crude oil has already risen 4% for the week, the most since June. Vigilance is advised. Key events to watch include token events, conferences, and token talks. By Francisco Rodrigues, derivatives positioning, market movements, bitcoin statistics, technical analysis, crypto equities, crypto treasury companies, ETF flows, spot BTC ETFs, and spot ETH ETFs. Source: Farside Investors. While You Were Sleeping.