U.S. investors withdrew $729 million from spot bitcoin exchange-traded funds over two days this week, reversing an earlier attempt to buy the market and adding pressure to bitcoin’s price. The outflows came as investors weighed the possibility of higher Federal Reserve interest rates, rising oil prices and renewed geopolitical tension in the Middle East.
ETF selling reverses an early-week rebound
Funds operated or managed by BlackRock, Fidelity, Morgan Stanley and ARK 21Shares recorded substantial withdrawals on Wednesday and Thursday, according to Farside Investors data cited by Bitcoin Magazine.
The week began with investors selling almost $90 million of ETF shares. That trend briefly changed on Tuesday, when they purchased nearly $119 million. The subsequent withdrawals, however, were large enough to produce a net two-day outflow of $729 million.
Spot bitcoin ETFs hold the underlying asset and trade on stock exchanges, giving investors exposure to bitcoin through a traditional market product. When investors sell ETF shares and funds experience outflows, the development can signal weaker institutional demand and may contribute to downward pressure on the cryptocurrency.
Rates, oil and Middle East tensions weigh on sentiment
The selling followed reports that the Federal Reserve could raise interest rates. Higher rates generally make liquidity more expensive and can reduce the appeal of assets viewed as sensitive to changes in market liquidity, including bitcoin.
Oil markets added to the pressure. Brent crude rose after renewed attacks on tankers in the Strait of Hormuz. U.S. President Donald Trump also indicated that talks with Iran were not producing results, raising the prospect that conflict in the Middle East could persist.
The relationship between oil prices, inflation expectations and bitcoin is not automatic. Higher energy costs can increase concerns about inflation, which may strengthen expectations for tighter monetary policy. However, bitcoin’s response has not been uniform: after the Federal Reserve adopted a tougher stance on inflation and increased interest rates by a quarter percentage point last month, bitcoin rose in the following days.
Bitcoin remains below its record high
Bitcoin was recently trading at slightly above $82,688 in the source report, down more than 3% over seven days but up almost 2% over 24 hours at that point. The cryptocurrency had been approaching $90,000 the previous week, while investors were also watching October’s historically favorable reputation among bitcoin traders, sometimes reflected in the nickname “Uptober.”
The latest decline leaves bitcoin 34% below its October all-time high of $126,080. The asset has spent much of 2026 in a bear market, although analysts have increasingly pointed to the August and September rally as evidence of a possible bull-market recovery.
Moneyiar market picture
Moneyiar data at 11:59 a.m. on October 11, 2026, put bitcoin at $83,083.39, up 0.32% over 24 hours but down 2.6% over seven days. Other tracked assets showed mixed performance: Aethir was $0.0064586, down 0.5% in 24 hours and 16.05% over seven days; FUNToken was $0.0087663, up 0.53% and 11.94%, respectively; and RedStone was $0.14818, down 0.94% over 24 hours and 15.14% over seven days.
