Bitcoin ETF inflows hit three-month high as trade tensions trigger crypto pullback

US spot bitcoin exchange-traded funds recorded their strongest weekly inflows in more than three months last week, underscoring renewed institutional demand even as the broader crypto market turned sharply lower at the start of this week amid escalating geopolitical tensions.

According to data from SoSoValue, US spot bitcoin ETFs attracted a combined $1.42 billion in net inflows in the week ended January 16.

This marked the highest weekly total since early October, specifically the week ended October 10, when inflows were last at similar levels.

BlackRock’s iShares Bitcoin Trust (IBIT) accounted for the bulk of last week’s inflows, pulling in $1.03 billion over the five-day period.

The surge in ETF demand coincided with a strong move higher in Bitcoin prices, with the world’s largest cryptocurrency climbing to around $97,000 toward the end of the week, up from roughly $90,500 at the start of the period.

The rebound in prices and flows suggested that institutional investors were returning to the market after year-end portfolio rebalancing and a volatile stretch in November and December.

Market participants viewed the magnitude of the inflows as a sign that demand for regulated Bitcoin exposure remains robust when macro conditions are supportive.

Spot Ethereum ETFs also saw a notable pickup in activity. Ether-linked funds recorded $479 million in net inflows last week, their strongest weekly inflow total since the week ended October 10, mirroring the recovery in bitcoin-related products.

Bitcoin pulls back on geopolitical headlines

The positive momentum, however, proved short-lived. Bitcoin retreated over the weekend and into Monday after headlines emerged around rising tensions between the United States and the European Union related to Greenland.

Bitcoin fell about 2.6% over the past 24 hours to around $92,618, down from roughly $95,400 earlier in the day.

The broader cryptocurrency market also came under pressure, with major altcoins such as Ether, Solana, and Cardano sliding in tandem with Bitcoin.

The selloff coincided with a broader risk-off move in traditional markets following mutual tariff threats between Washington and Brussels.

While crypto markets traded through the weekend and initially appeared to ignore the news, selling accelerated once Asian markets opened.

Tariff threats spark risk-off mood

US President Donald Trump said he would impose tariffs on eight European nations that have opposed his proposal for the United States to acquire Greenland.

Trump announced a 10% tariff on goods from Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom and Norway, starting Feb. 1, and said the measures would remain in place until the U.S. is allowed to buy Greenland.

According to a Financial Times report on Sunday, EU capitals are weighing retaliation, including up to €93 billion ($101 billion) in tariffs on U.S. goods or restrictions on American companies’ access to the EU market.

The escalating rhetoric triggered a wave of risk aversion among traders, weighing on assets perceived as higher risk, including cryptocurrencies.

Heavy liquidations amplify the move

The downturn was exacerbated by forced liquidations across the crypto derivatives market.

In the past 24 hours, roughly $824 million in positions were liquidated, according to Coinglass data aggregated from publicly available sources.

Of that total, about $763.7 million were long positions, highlighting how heavily positioned the market had become on the bullish side.

The single largest liquidation was reported on Hyperliquid, where a BTCUSDT position worth $25.83 million was wiped out.

Bitcoin fell as much as 3.8% shortly after the Asian trading session opened, before trimming losses to around 2.5% during European hours.

Analysts noted that the move occurred during a period of relatively low liquidity, allowing sellers to exert outsized influence and trigger stop orders.