The National Bank of Canada has recently hinted at a bearish outlook on Bitcoin, aligning with a broader trend of institutional investors reducing their exposure to the leading cryptocurrency. On February 12, 2025, the bank filed a put option to sell over $1.3 million of its holdings in BlackRock’s iShares Bitcoin Trust ETF, signaling a potential shift in sentiment toward Bitcoin amid growing economic concerns.
This move comes as Bitcoin ETFs have faced significant outflows in recent days. According to data from Farside Investors, Bitcoin ETFs saw outflows totaling $647 million over four consecutive days from February 10 to February 13. These outflows suggest that investors may be moving away from Bitcoin due to increasing macroeconomic uncertainties.
One key factor influencing this bearish stance is the latest inflation data from the U.S. Bureau of Labor Statistics. The report showed that inflation reached 3% in January 2025, slightly higher than expectations. This suggests that the Federal Reserve may maintain its current interest rates to keep inflation in check, a decision that could negatively impact riskier assets like Bitcoin. Higher interest rates generally make traditional investments, such as bonds, more attractive, diverting capital away from speculative assets.
Additionally, recent trade tensions between the U.S. and its global partners, including China, Mexico, and Canada, have added to market uncertainty. The Biden administration’s decision to impose new tariffs on imports from these countries has heightened concerns over economic stability, further dampening investor confidence in high-risk assets.
As of today, Bitcoin is trading at approximately $95,432, marking a 1.7% decline from the previous session’s close. The cryptocurrency has been facing volatility as institutional investors, including the National Bank of Canada, reassess their positions.
While some analysts remain optimistic about Bitcoin’s long-term potential, the short-term outlook appears cautious. The National Bank of Canada’s decision to reduce its exposure to Bitcoin ETFs reflects a broader trend among institutional investors who are hedging their positions amid global economic uncertainty.
For now, the future of Bitcoin remains uncertain, with market participants closely monitoring macroeconomic developments and institutional investment trends.
