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The ETF Spot Bitcoin in the US experienced an outflow of US$143.5 million amid the implementation of trade tariffs by President Donald Trump against Canada and Mexico, causing Bitcoin to drop to US$82,000 on March 4th. The largest outflow occurred in the Fidelity Wise Origin Bitcoin Fund (FBTC) at US$46.1 million, followed by ARK 21Shares Bitcoin ETF (ARKB) at US$43.9 million. Other ETFs such as Franklin (EZBC), Bitwise (BITB), Invesco Galaxy (BTCO), and WisdomTree (BTCW) also recorded outflows of US$35 million, US$24 million, US$16 million, and US$13 million respectively.
Here is the trading strategy for Bitcoin (BTC) in response to the news of a Bitcoin ETF outflow of US$143.5 million and the implementation of Trump's tariffs affecting BTC prices:
Trend Analysis and Support/Resistance
Currently, BTC has dropped to US$82,000 due to macroeconomic pressure from Trump's tariffs. Identify key support levels ( such as US$80,000 or lower at US$74,000) and resistance ( such as US$85,000 or US$90,000) based on historical data.
If the price approaches support, consider taking a long position with a tight stop-loss below support to anticipate a reversal.
Scalping approach to High Volatility
This news creates volatility. Use scalping strategy with short-term (5-15 minute) timeframes to take advantage of quick price movements. Enter when there is a breakout from small support/resistance levels, then take quick profits (for example, 0.5-1%).
Wait for Post-News Confirmation
Avoid impulsive trading when news first appears. Wait for confirmation of the bullish/bearish trend with indicators such as RSI or MACD. If RSI is oversold <30 near support, this could be a buy signal. Conversely, if overbought >70 at resistance, consider shorting.
Risk Management
ETF outflows and Trump's tariff increase uncertainty. Limit risk with small positions (1-2% of capital) and tight stop-loss (2-3% below entry). Diversify with other assets if the BTC market is too volatile.
Monitor Market Sentiment
Pay attention to the market's reaction to Trump's policies and continued ETF data. If outflows persist or tariffs are expanded, selling pressure could increase, supporting a short strategy. If sentiment improves (for example, positive news from regulators), be prepared for a long position.
This strategy is flexible, but adjust to risk tolerance and the latest technical analysis. High volatility requires extra discipline.
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