U.S. investors withdrew $729 million from spot bitcoin exchange-traded funds this week, reversing earlier inflows and putting downward pressure on the cryptocurrency's price.
Funds managed by BlackRock, Fidelity, Morgan Stanley, and ARK 21-Shares all experienced significant outflows on Wednesday and Thursday, according to data from Farside Investors. Earlier in the week, investors had sold close to $90 million in shares before buying nearly $119 million on Tuesday.
The outflows followed news that the Federal Reserve may raise interest rates. Additional negative factors included rising Brent crude prices following renewed attacks on tankers in the Strait of Hormuz, as well as statements from U.S. President Trump indicating that talks with Iran were not progressing.
Bitcoin's price stood at approximately $82,688, down more than 3% over a seven-day period, though it rebounded nearly 2% over the previous 24 hours. The cryptocurrency was approaching $90,000 last week.
Bitcoin's price has demonstrated particular sensitivity to geopolitical developments this year, especially following U.S. and Israeli military action against Iran, which contributed to oil price increases. Rising oil prices often lead investors to anticipate Federal Reserve rate hikes, which can reduce liquidity in cryptocurrency markets.
Bitcoin currently trades 34% below its October all-time high of $126,080.
