The broader market's reaction to US tariffs suggests BTC could face intensified selling pressure if US BTC-spot ETFs begin reporting sizeable outflows.
The broader market is reacting poorly to US tariffs, which could lead to increased selling pressure on BTC if US BTC-spot ETFs begin reporting significant outflows.
On January 31, the US BTC-spot ETF market reported net inflows of $318.6 million, contributing to weekly inflows of $559.5 million. While this trend has supported BTC demand, sustained outflows could erode investor confidence and cast doubt on the feasibility of a US Strategic Bitcoin Reserve (SBR).
In late 2024, Senator Cynthia Lummis, Chair of the Senate Banking Subcommittee on Digital Assets, introduced the Bitcoin Act. The bill proposes that the US government acquire one million BTC over five years, with a mandatory holding period of 20 years.
The designation of an asset for a strategic reserve is subject to approval by Congress, the Federal Reserve, the Treasury Department, and the President.
BTC's recent price sensitivity to Fed monetary policy and government actions highlights its susceptibility to macroeconomic developments.
Bitcoin Price Outlook
On February 2, BTC slid by 3.13%, following Saturday's 1.54% loss, closing at $97,882.
Multiple factors will dictate BTC's near-term trajectory, including Trump's policies, the Fed rate path, and US BTC-spot ETF flows.
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