Bitcoin exchange-traded funds (ETFs) in the U.S. faced a significant outflow of $242.6 million on Tuesday. This was their worst day since September 3, according to SoSoValue.
This sudden drop ended an eight-day streak of inflows. Bitcoin (BTC) lost as much as 6% due to rising tensions in the Middle East. Iran launched around 200 ballistic missiles at Israel, which escalated the situation. This attack came after Israel’s recent strikes on Hezbollah in Lebanon, a group labeled as a terrorist organization by over 60 jurisdictions, including the U.S. and the European Union. Israeli Prime Minister Benjamin Netanyahu has vowed to retaliate.
As a result, Bitcoin fell to a low of $60,300. This decline wiped out nearly all its gains since the Federal Reserve cut interest rates last month. It’s not the best start to “Uptober,” a month known for strong Bitcoin performance. Since October began, Bitcoin has dropped 2.6%, according to CoinDesk Indices.
Ether ETFs also struggled on Tuesday, experiencing an outflow of $48.5 million. This was their worst day since September 23.