Crypto Market Slides as ETF Outflows and Tensions Fuel Volatility

The crypto market experienced a sharp 5.12% drop in the past 24 hours, extending its weekly losses to 13.8%. This decline reflects growing investor concern amid rising macroeconomic tensions and weakening risk appetite.

Crypto Market Plunges Amid ETF Outflows and Escalating U.S.–China Trade Tensions

The increasing anxieties of a new U.S. Chinese trade war have caused a change to risk assets. Consequently, the relationship between equities and cryptocurrencies has shot up. The index heavy in technology QQQ registered a significant spike in correlation of +0.91, signifying the growing sensitivity of crypto to the overall market.

In the meantime, the market was rattled by enormous outflows of Bitcoin ETFs, the total of which amounted to $536 million in one day. This is the highest withdrawal in a day since August, which points to massive institutional withdrawal of the crypto sphere.

Traders were further shaken in the derivatives market. The perpetual funding rates increased 128% and the over-leveraged positions were rapidly liquidated as a result. This wave of deleveraging helped to cause severe price adjustments in large cryptocurrencies.

Bitcoin (BTC) dropped by 4% over the last day, slipping to approximately $105,000. At the same time, Ethereum (ETH) fell by 6%, dropping further below the critical $4,000 threshold.

Tokens like BNB, Solana (SOL), and Cardano (ADA) also registered notable losses, amplifying the broader market decline.

ETF Filings Flood SEC Amid Shutdown

Another event that happened this week was the surge of new crypto ETF applications that were filed with the U.S. Securities and Exchange Commission. Although the government was partially shut down, no less than five applications had been filed.

One of the most prominent was the offer of VanEck concerning a new ETF with Ethereum concentration. The VanEck Lido Staked Ethereum Fund will track the liquid staking token (stETH) at Lido, and seek to enjoy the protocol-based staking rewards.

In the meantime, 21Shares also applied to launch a leveraged ETF with a 2x daily exposure to the Hyperliquid native, HYPE.

This is only applicable to the performance of the token on a daily basis and not in the long-term. The filings have already added to the fact that what has been dubbed as ETfoxtober by many companies is a rush to launch crypto-based investment products.

Crypto Executives Attend Trump’s White House Dinner

With the growing intricacy between political and financial circles, U.S. President Donald Trump hosted a White House fundraising dinner of high profile this week. The event was expected to bring together funds to support a planned expansion of the ballrooms to the tune of 250 million dollars.

The attendees included crypto industry heavy weights such as Gemini founders Cameron and Tyler Winklevoss. Wall Street Journal also reported that executives of Coinbase and Ripple Labs also attended. It coincided with the 15 th day of the U.S. government shutdown and this has raised eyebrows due to timing.

There were also delegates of the large technological and military companies such as Meta, Amazon, Google, Lockheed Martin, and Microsoft. Kelly Loeffler, the former Bakkt CEO and the current SBA administrator was also observed to be present there.

The management has not revealed the amount of donations made and they have failed to respond to the inquiries.

Trump Family Crypto Ventures Surpass $1 Billion

The financial presence of the Trump family in the crypto-market is increased. Recent report by Financial Times showed that their online asset transactions have earned them more than 1billion pre-tax earnings.

The key player in this evolution is World Liberty Financial, a crypto project that is allegedly co-founded by Donald Trump and managed by his sons.

The company has introduced several tokens and stablecoins which have brought billions of investments. In June, President Trump revealed the receipt of income of 57.4 million due to his involvement in the company. The holdings of the Trump family were soaring to a value of 5 billion last month after a token unlock.

Their profits are not limited there. The family has made hundreds of millions out of trading and selling memecoins like the official Trump (TRUMP) and the official Melania Meme (MELANIA). Their true income might be higher than it is reported, according to Eric Trump.