Bitcoin ETFs Suffer $729M Outflows in Two Days as Investors Turn Bearish

U.S. investors turned the other way this week, withdrawing $729 million from spot bitcoin ETFs and putting the leading cryptocurrency's price under pressure.

According to Farside Investors data, ETFs run by BlackRock, Fidelity, Morgan Stanley and ARK 21-Shares each recorded hefty withdrawals on Wednesday and Thursday.

The week opened with about $90 million in share sales, but that gave way to nearly $119 million in purchases on Tuesday.

The rest of the week brought outflows after news that the Federal Reserve may hike rates. Brent crude also moved higher on renewed attacks on ships in the Strait of Hormuz.

President Trump also suggested that negotiations with Iran were not progressing, indicating that Middle East conflict might persist.

Bitcoin was trading just above $82,688 recently, more than 3% lower over the past week. It has bounced back somewhat in the last 24 hours, gaining nearly 2%.

By last week, the coin had been rapidly approaching $90,000. Market participants anticipate solid gains because October, known as “Uptober,” has traditionally been a strong month for bitcoin traders.

This year, bitcoin's price has shown heightened sensitivity to geopolitical risks, particularly after the U.S. and Israel struck Iran, which sent oil prices soaring.

Climbing oil prices often push investors to expect rate increases from the Federal Reserve. Higher rates reduce the liquidity that typically supports bitcoin's value.

Yet the pattern doesn't always hold. Last month, the Fed struck a hawkish tone on inflation and hiked rates by a quarter percentage point, and bitcoin moved higher in the days that followed.

Bitcoin remains 34% off its record high of $126,080, reached in October. The asset has been in a bear market for much of 2026, though analysts increasingly see signs of a bull market after gains in August and September.