Cryptocurrencies: “Recovered, but still struggling”
The stock market turbulence had a full impact on the crypto market, but since yesterday things have been picking up again somewhat. Crypto trackers recently recorded high outflows worldwide, but inflows in Europe.
10 April 2025. FRANKFURT (Börse Frankfurt). The 90-day tariff break announced by US President Trump yesterday (Wednesday) has also caused a turnaround in cryptocurrencies - albeit less spectacularly than on the stock market. Bitcoin, which had previously been trading below USD 77,000, was back at USD 82,000 on Thursday morning. However, the all-time high of USD 109,000 from January remains a long way off. Ethereum is currently trading at USD 1,614, down from a high of over USD 4,000, while Solana is trading at USD 117, down from USD 292. This means that cryptocurrencies are once again moving more in line with tech stocks than as a “safe haven”.
Yesterday, Trump suspended tariffs that had just come into force for 90 days, but not for China. According to André Dragosch from issuer Bitwise, the developments in US trade policy had already cast considerable doubt on economic stability in mid-March. “However, the aggressive new tariffs announced on ‘Liberation Day’ exceeded the expectations - or fears - of market participants many times over,” he explains. This caused correspondingly high waves on the markets, for traditional and digital assets alike.
Global outflows from crypto trackers
In addition, concerns about rising inflation in the US have increased and interest rate cuts by the US Federal Reserve are considered less likely. This makes interest-free cryptocurrencies less attractive. According to WisdomTree, 744 million US dollars flowed out of physically collateralized Bitcoin ETNs worldwide in March. For Europe, however, the issuer registered inflows. “We are seeing strong divergences in regional investor behavior,” notes Dovile Silenskyte from WisdomTree. This trend is also evident in Ethereum trackers, with global outflows and inflows in Europe.
However, in an environment otherwise characterized by extremely high turnover, there is not much going on in trading crypto ETNs, as traders report. “It's quiet, investors seem to have been hardened by the previous price slumps,” explains Ivo Orlemann from ICF Bank. “When there is trading, it's mostly Bitcoin ETNs.” Leo Puschmann from Lang & Schwarz also reports low turnover.
High-turnover Bitcoin tracker. The most traded crypto ETN on Xetra in March was once again Bitwise Physical Bitcoin (DE000A27Z304), formerly ETC Physical Bitcoin. The Bitcoin trackers from CoinShares (GB00BLD4ZL17), VanEck (DE000A28M8D0), WisdomTree (GB00BJYDH287) and 21Shares (CH0454664001) also recorded high turnover. The ETNs with the highest turnover on other currencies were 21Shares XRP on Ripple (CH0454664043), 21Shares Solana Staking (CH1114873776) and VanEck Ethereum (DE000A3GPSP7).
Basis for sustainable rise?
In keeping with their role, issuers remain confident about the further development of cryptocurrencies: “Once the macroeconomic fog lifts, the change in tone from US regulators could pave the way for a new dynamic,” explains Maximiliaan Michielsen of 21Shares. “The road ahead may still be bumpy in the short term, but the goal remains the same: a more integrated, institutionalized and ultimately resilient crypto ecosystem.”
Dragosch from Bitwise points to the high inflows into US spot ETFs since the start of the year. “Long-term investors are quietly adjusting their positions in the background - in anticipation of an increasingly fragmented world order in which cryptocurrencies could play a greater role.” For Silenskyte from WisdomTree, the consolidation could be the basis for a sustained rise, partly due to Trump's plans for the Bitcoin reserve. “Although the initial size of the reserve is relatively modest at an estimated 200,000 bitcoins, the symbolic and geopolitical significance is significant.”
According to crypto analyst Timo Emden from Emden Research, yesterday's decision could be the starting signal for a recovery rally. However, the customs dispute is anything but off the table. “Postponed is not canceled” is therefore the motto.
by Anna-Maria Borse, 10 April 2025, © Deutsche Börse AG
About the author
Anna-Maria Borse is a financial and business editor specializing in the financial market/stock exchange and economic topics.
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