The evolving dynamic between Bitcoin and traditional financial markets faces pressure as global investors retreat from risk assets due to escalating US trade tensions. US-listed spot Bitcoin (BTC) exchange-traded funds (ETFs) experienced a fourth consecutive day of outflows on April 8, with over $326 million in net redemptions across products, as per data from Farside Investors. The largest sell-off was seen in BlackRock’s iShares Bitcoin Trust ETF (IBIT), with over $252 million redeemed, marking the biggest daily outflow since Feb. 26. The selling pressure followed US President Donald Trump’s announcement of reciprocal import tariffs on April 2, leading to a historic $5 trillion wipeout in the S&P 500 over two days. The crypto market turbulence post-tariff sell-off highlights Bitcoin’s evolving relationship with traditional markets, according to Lennix Lai, global chief commercial officer at OKX exchange. While Bitcoin initially remained above the $82,000 support level, it dropped below $75,000 on April 6. The sell-off was attributed to Bitcoin’s 24/7 liquidity mechanics, making it the sole large liquid asset available for de-risking over the weekend. Despite signs of a weakening correlation between Bitcoin and equities, its price trajectory remains linked to global liquidity conditions. Analysts see the growing money supply as a key catalyst for Bitcoin’s performance. Arthur Hayes, co-founder of BitMEX, underscores that Bitcoin trades based on market expectations for future fiat supply. The concept of Bitcoin as a strategic reserve asset for diversification in volatile traditional markets is gaining traction. Overall, Bitcoin’s price movement and growing conceptual influence are closely watched amid changing global financial conditions.