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See our full XRP forecast here.
Bitcoin Slides Amid US-China Trade Tensions
XRP’s loss coincided with a bitcoin (BTC) drop below $80,000 as tariff-driven risk aversion impacted risk assets. Concerns about tariffs impacting the US economy triggered a flight to safety.
Trump’s tariff-pause relief faded on Thursday as investors considered the latest hike on levies and potential economic fallout. Fears of an escalation in the US-China trade war intensified after reports of Beijing planning countermeasures to the tariff hike on Chinese goods.
Robin Brooks, Senior Fellow at the Brookings Institute, commented:
“Stocks are retreating from their blistering rally yesterday. That’s the right move. The only trade relationship that matters is that between the US and China and that relationship is deeply stressed. Every other country is just along for the ride. Only China matters for markets.”
The Nasdaq Composite Index tumbled 4.31% on April 10, while gold surged 2.99% to close at $3,175.
BTC-Spot ETF Outflows Extend as Risk Aversion Builds
These geopolitical concerns are exacerbating ETF investor jitters. According to Farside Investors, key flow trends for April 10, included:
- Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $74.6 million.
- Grayscale Bitcoin Trust (GBTC) had net outflows of $44.6 million.
- ARK 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) reported a combined $23.5 million in net outflows.
Excluding BlackRock’s (BLK) pending iShares Bitcoin Trust (IBIT) data, total US BTC-spot ETF outflows reached $149.5 million, marking outflows in nine of the past ten sessions.
BTC Price Outlook: Bearish vs. Bullish Scenarios
On April 10, BTC fell 3.63%, partially reversing Wednesday’s 8.27% rally to close at $79,593.
Near-term scenarios include:
- Bearish Scenario: An escalation in the US-China trade war, weak US economic data, a hawkish Fed stance, continued ETF outflows, or opposition to the Bitcoin Act could drag BTC toward $70,000.
- Bullish Scenario: Trade de-escalation, dovish Fed signals, bipartisan support for the Bitcoin Act, and renewed ETF inflows could lift BTC toward $109,312.
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