New Panic for the crypto market: American Bitcoin ETFs saw nearly $870 million withdrawn in a single day, their second biggest withdrawal in history. In just three weeks, $2.6 billion has left these investment products, despite being touted as the institutional Holy Grail of the market.
The reason? Bitcoin falling back below $100,000, symbolizing a harsh disillusionment after months of euphoria. In parallel, Ethereum ETFs also experienced a wave of withdrawals amounting to over $250 million, their worst session since mid-October.
Bitcoin Plunges, Gold Surges
While Bitcoin is now trading around $96,500, down nearly 6% in 24 hours and 11% for the month, precious metals are following an opposing trajectory. Gold is up by 4%, silver by 9%, confirming a significant return of investors to safe-haven assets.
This contrast highlights a profound tension in the markets: cryptocurrencies are faltering despite a weakening dollar, while metals benefit from growing distrust in global budgetary policies.
Investors Fleeing Risk
According to Greg Magadini (Amberdata), the crypto market is paying the price for its excess optimism. After the US government shutdown, US-China trade cooperation, and signals of Fed easing, “all positive catalysts have already been used.” As a result, massive long positions are being liquidated due to a lack of buyers.
But another worrying factor is the risk of credit freeze looming over Digital Asset Treasuries (DAT). These structures, borrowing to buy Bitcoin and altcoins via convertible bonds or debt, now find themselves vulnerable. If credit markets tighten, they may be forced to sell off their assets to repay debts, triggering a cascade of forced sales.
“This risk is less pronounced for Bitcoin,” Magadini notes, “but very real for DATs overexposed to altcoins bought at their peak.”
Gold, Reflection of Global Concerns
Behind the rise in the yellow metal lies a strong signal: global public finances are cracking. Japan has a debt-to-GDP ratio exceeding 220%, the US surpasses 120%, France and Italy hover around 110%. Even China, with public debt below 100% of GDP, carries a total debt exceeding 300%.
“It’s not a flight from the dollar, but a reaction to broken budgetary policies,” suggests Robin Brooks (Brookings Institution). In this climate, investors seek refuge, and gold reclaims its throne.
For now, the message is clear: trust is eroding, and investors are keeping their distance from an asset that has once again become a victim of its own volatility.
