U.S. investors abruptly reversed course on Thursday, pulling more than half a billion dollars out of spot bitcoin exchange-traded funds — investment vehicles that hold bitcoin directly and trade on stock exchanges — as risk-off sentiment resurfaced across markets.

A total of $635.6 million flowed out of the funds on the day, according to data from Farside Investors. The redemptions put downward pressure on bitcoin's price, which at one point dropped below $81,000. The coin has since rebounded and was recently trading for nearly $81,669, down just 1% over a 24-hour period.

BlackRock's iShares Bitcoin Trust saw the biggest outflows, with investors cashing out more than $254 million. Fidelity's Wise Origin Bitcoin Fund followed, losing close to $218 million. Over $109 million exited the ARK 21Shares Bitcoin ETF, while Morgan Stanley's fund and Bitwise's ETF lost nearly $30 million and over $27 million, respectively.

Despite the single-day withdrawals, the investment vehicles have recorded net positive investment of more than $439 million for the week overall — meaning Thursday's pullout, while steep, has not wiped out the week's accumulated net inflows. Subsequent daily readings from Farside Investors will determine where the weekly tally ultimately lands.

The shift into risk-off mode followed flare-ups in the Middle East that sent the price of oil higher. Brent crude hit its highest price in five months after the Houthis, a Yemeni rebel group, attacked Saudi Arabia on Thursday, sparking concerns over further disruption to energy supplies.

Bitcoin's price has been rattled this year since the U.S. and Israel attacked Iran, halting oil supplies as ships have struggled to pass through the strategic Strait of Hormuz, the chokepoint through which a fifth of the world's oil passes.

A higher oil price can hurt bitcoin and other "risk-on" assets because it increases the chances of the U.S. central bank raising interest rates. Bitcoin has typically performed well in a low interest rate environment, since that means the asset has more liquidity to rally.

Investors on Thursday also sold off technology stocks, which had rallied earlier in the week on the back of SpaceX's impressive earnings, adding to the day's broad pullback in risk assets.

Analysts are saying bitcoin is entering a bull market again. Data published last month showed that the leading cryptocurrency crossed above its 365-day moving average, the average price of the past year — a move typically seen as a sign it is out of a bear market — following a strong run in August.
Bitcoin notched a record of $126,080 in October 2025, but began to sink later that month after the biggest liquidation event in crypto history saw more than $19 billion in bets closed. The coin spent the first half of 2026 trading well below that level, but picked up again in August and September, notching its best quarter in years.

This article first appeared on Bitcoin Magazine and was written by Mathew Di Salvo.