BTCETF encountered nearly $1 billion outflow, what will the BTC market be like in 2025?

Last week, Bitcoin ETF experienced a significant net outflow.

On December 19th, the BTCETF in the United States experienced a record-breaking outflow of $670 million, followed by a net outflow of nearly $300 million on December 20th. Among them, iShares BTC Trust (IBIT) led the way with a withdrawal of $72.7 million. These trends reflect investors' cautious sentiment in the market volatility conditions.

Despite the market turbulence, BTC has shown significant resilience, rising from $92,000 to $99,500 on December 20th and 21st. This is mainly due to the strong latest PCE data announced by the United States last Friday, which led the market to believe that the Fed may not only cut interest rates twice in 2025. It can be seen that the current price fluctuations of BTC are highly correlated with the Fed's interest rate cuts next year. With Trump set to take office in the White House in January next year, it will be worth paying attention to whether he can introduce more favorable policies at that time.

Outlook 2025: Can the Trump administration launch more bullish policies?

The upcoming Trump administration is expected to promote a crypto-friendly regulatory environment, laying the foundation for accelerated growth of BTC in 2025. This crypto-supportive leader is expected to fill important positions in institutions such as the U.S. Securities and Exchange Commission (SEC). In addition, recently, Senator Cynthia Lummis has proposed the Bitcoin Reserve Act, which suggests that the U.S. holds a reserve of 1 million BTC and plans to reduce national debt by 35% by 2049. According to asset management company VanEck, this measure will lead to an annual compound growth rate of BTC price of up to 25%.

By 2025, BTC will be further integrated into the global financial system. Companies like MicroStrategy have set a precedent for using BTC as a treasury asset, while emerging markets are increasingly using it as a hedge against inflation and currency instability. BTC ETFs further legitimize the asset and expand the reach for institutional and retail investors.

With the increase in regulatory transparency, BTC will further consolidate its role as a bridge between traditional finance and digital innovation. Whether through adoption by the US reserves, corporate adoption, or reliance on emerging markets, BTC is poised to redefine global finance in 2025 and provide resilience and adaptability in an ever-changing economic landscape.

BTC's critical moment

In the face of record outflows of ETF funds, BTC's resilience highlights its adaptability and strength. As BTC approaches $100,000, it is not just a short-term phenomenon, but also a long-term driver of financial innovation.

Looking ahead, BTC will redefine global finance. Its hedging role in emerging markets, institutional adoption growth, and the potential of US regulatory reform all highlight its transformative potential. While in the short term, the price of BTC may encounter some obstacles, more and more signs indicate that BTC may receive more support in the future.

This article BTCETF encountered a large outflow of nearly 1 billion US dollars, how will BTC perform in 2025? First appeared on Chain News ABMedia.