The spot ETF market dominated by speculative investments: Market turbulence caused by Trump's policies

As recent data from the spot ETF sector falls short of market expectations, it has become evident that the behavior patterns of speculative investors underpin market fluctuations. The ETF purchase data released on Tuesday shows weakness contrary to the traditional bullish scenario, driven by a temporary investment stance based on speculative price increase expectations.

What ETF Data Suggests About the Nature of Speculative Investors

Many traditional investors in spot ETFs are not participating out of belief in Bitcoin’s long-term value but are motivated by short-term price increase speculation. These speculative traders tend to continue buying actively during upward market phases but quickly sell with a willingness to accept losses once prices reverse. As a result, significant volatility is introduced into overall market trading data, causing data points to deviate from expected values.

As of January 31, 2026, Bitcoin’s price is at $84.18K, with a 24-hour change rate of -0.70%. Even in such a micro-movement state, the market sentiment continues to react sensitively due to repeated inflows and outflows of speculative funds.

Immediate Reaction of Bitcoin Market to President Trump’s Tariff Policy Announcement

The turning point was the announcement at 3:27 AM Eastern Time of President Donald Trump’s temporary suspension of tariffs related to Greenland. This policy announcement immediately had a positive impact on risk asset markets, with both the U.S. stock market and Bitcoin showing favorable responses. The improvement in market sentiment driven by Trump’s policy suggested to investors that the data might not be as pessimistic as feared, encouraging short-term speculative buying.

Two Market Psychologies: Speculative Traders and Long-term Investors

However, even after this policy announcement, the fundamental behavior pattern of speculative investors has not changed. The dichotomy of market behavior—speculative capital inflows seeking price increases and rapid selling during downturns—continues to dominate the market. While data from Wednesday onward is unlikely to be as disappointing, the fate of speculative investments suggests that rapid capital outflows could occur again when new negative factors emerge. Until market participants shift from speculative trading styles to more sustainable investment approaches, such volatility is expected to persist.

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