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Bitcoin traded largely unchanged near $89,000 on Thursday as U.S. equities posted their second consecutive day of gains following US President Donald Trump's reversal on European tariff threats, though sustained outflows from spot bitcoin ETFs suggest institutional investors remain cautious on crypto exposure.
Bitcoin stood at $89,048 as of press time, flat over 24 hours. Ethereum declined 1.75% to $2,962, while Solana fell 0.99% to $128.55. Total cryptocurrency market capitalization was $3.03 trillion, down 0.46% in 24 hours.
The muted crypto performance contrasts with a rally in traditional markets. The S&P 500 gained 0.55% Thursday and the Nasdaq Composite rose 0.91% after Trump stepped back from using tariffs as leverage to acquire Greenland, saying a framework for a deal was in sight. The advances followed Wednesday's largest daily percentage gain for the S&P 500 in two months.
While the equity market rebounds, spot bitcoin ETFs recorded significant outflows Tuesday and Wednesday, shedding $479.7 million and $708.7 million respectively, likely reflecting institutions reducing risk exposure and trimming high-beta assets amid geopolitical uncertainty.
The divergence highlights crypto's positioning as a risk-on asset that remains sensitive to macro volatility. While stocks have recovered roughly half of Tuesday's tariff-driven selloff, bitcoin continues trading approximately 30% below its all-time highs reached earlier this cycle.
Meanwhile, traditional safe havens posted strong gains. Gold surged to a record $4,930 per ounce during U.S. afternoon trading Thursday, while silver reached all-time highs of $99 per ounce as investors sought defensive positioning.
Economic data released Thursday showed resilience in consumer spending and a 4.4% third-quarter GDP growth rate, slightly above expectations. Initial jobless claims rose less than forecast, supporting the case for continued economic strength despite tariff-related uncertainty.
Several members of the so-called Magnificent Seven tech stocks scheduled to report next week. Their outlooks will be closely watched given their outsized influence on market direction and elevated valuations. All seven gained Thursday, led by Meta's 5.7% surge and Tesla's 4.2% climb.
