U.S. investors changed direction this week by withdrawing $729 million from spot bitcoin exchange-traded funds, which created downward pressure on the top cryptocurrency’s value.
Data from Farside Investors shows that funds overseen by BlackRock, Fidelity, Morgan Stanley, and ARK 21-Shares all saw substantial capital outflows on Wednesday and Thursday.
The week began with investors selling nearly $90 million worth of shares before purchasing close to $119 million on Tuesday.
Outflows dominated the remainder of the week following reports that the Federal Reserve might increase interest rates. Additional adverse developments featured Brent crude prices climbing after renewed tanker attacks in the Strait of Hormuz.
Furthermore, U.S. President Trump suggested that negotiations with Iran were not yielding results, indicating that conflict in the Middle East could persist.
Recently, bitcoin traded at just above $82,688, marking a decline of over 3% across a seven-day span. The leading digital asset has recovered modestly over the past 24 hours, climbing nearly 2%.
Even so, the cryptocurrency was rapidly approaching $90,000 just last week. Speculators anticipated strong returns because the month known as “Uptober” has historically performed well for bitcoin investors.
Throughout the year, bitcoin’s price has shown particular vulnerability to geopolitical pressures, particularly following the U.S. and Israeli strikes on Iran that triggered a spike in oil prices.
Rising oil costs frequently encourage investors to wager on Federal Reserve rate hikes. These higher interest rates subsequently reduce the market liquidity needed for bitcoin’s price to thrive.
Nevertheless, this dynamic does not always hold true: last month, the Fed adopted a firm stance on lowering inflation and implemented a quarter-point rate increase, yet bitcoin’s value increased in the days that followed.
Bitcoin currently sits 34% below its record peak of $126,080 reached in October. Although it has weathered a bear market for most of 2026, analysts are increasingly highlighting signs of a bull market following rallies in August and September.
Frequently Asked Questions
How much money did spot bitcoin ETFs lose in two days?
Spot bitcoin exchange-traded funds shed $729 million in withdrawals over a two-day period.
Which financial institutions experienced significant outflows?
Funds managed by BlackRock, Fidelity, Morgan Stanley, and ARK 21-Shares all experienced notable outflows on Wednesday and Thursday.
What factors contributed to the recent outflows?
Outflows followed news that the Federal Reserve may raise interest rates, alongside rising Brent crude prices from Strait of Hormuz tanker attacks and comments from U.S. President Trump indicating stalled talks with Iran.
What is bitcoin’s current price and historical high mentioned in the article?
Bitcoin recently traded at a little over $82,688, which is 34% below its all-time high of $126,080 reached in October.
