American investors have reversed course, cashing out of spot Bitcoin exchange-traded funds after a hot run at the beginning of August. 

Data from Farside Investors shows that investors pulled over $385 million from the U.S. funds last week. The week before, the funds had received fresh cash every day, bringing in more than $865 million in investment — their biggest inflows since April. 

The turn in sentiment comes as the price of the biggest cryptocurrency remains flat: Bitcoin was recently trading for $64,066, unmoved over the past week and last 30 days. 

Investors initially seemed unfazed by the huge Coldcard hack on July 31, when cybercriminals stole over $115 in Bitcoin after discovering a vulnerability in the popular product’s software. 

Bitcoin investors also shrugged off a delay in a vote on the long-awaited crypto Clarity Act, continuing to buy into the funds despite negative regulatory news. 

But things last week changed, with investors pulling cash out of the major investment vehicles as tensions in the Middle East started to escalate again. 

BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund experienced the biggest outflows last week, while Morgan Stanley’s fund, which debuted in April, received net inflows. 

Current macroeconomic headwinds, such as the U.S. war with Iran and rising oil prices, could see inflation go up again. The price of Bitcoin has typically done well on news that inflation is cooling because investors expect interest rates to come down.

Bitcoin — along with stocks — has experienced price bumps when President Trump has hinted that a deal with Iran was imminent, but the current war appears to have no end in sight. 

While the price of Bitcoin has been relatively stable — it hasn’t budged over the past month — a July report from NYDIG said that the asset’s year-to-date performance makes it the worst-performing asset, losing out against U.S. treasuries, silver, and currencies like the Swiss Franc. 

It added that if Bitcoin’s price action were to match other drawdowns — like the bear market of 2022 — a “potential cycle low near $38k-$39k” was possible.