Bitcoin Holds Near December Lows

Bitcoin fell below $77,000 in early February, hitting its lowest level since early April 2025, amid weakening demand and thinning liquidity. The cryptocurrency has been under pressure lately, dropping about 40% below its October peak. In January, Bitcoin declined by almost 11%, marking its fourth consecutive monthly drop, the longest losing streak since 2018, during the crash that came after the 2017 initial coin offering boom. Selling pressure was further reinforced by significant outflows from US spot Bitcoin ETFs, which recorded $1.49 billion in net withdrawals during the final week of January. At the same time, global uncertainty drove investors toward traditional safe-haven assets such as gold and silver, leaving risk-sensitive assets, including cryptocurrencies, vulnerable to selling. Other major tokens also faced increased selling pressure, with Ether falling to an eight-month low and Solana dropping to its lowest level in two years.

Bitcoin fell 2.8% to $82,159 in late January, marking its lowest level since November 21, 2025, dragged down by a combination of sustained ETF outflows and subdued market sentiment. Over five consecutive trading days, from January 20–26, Bitcoin spot ETFs recorded net outflows of $1.14 billion, the largest weekly exodus since early January. The outflows were heavily concentrated in Fidelity’s FBTC, Grayscale’s GBTC, BlackRock’s IBIT, and Ark 21Shares’ ARKB, which made up about 92% of total redemptions. Notably, BlackRock’s iShares Bitcoin Trust, the largest Bitcoin ETF and one of the most successful fund launches ever, has now fallen behind the firm’s Gold ETF in total assets. Moreover, market sentiment remained subdued amid geopolitical uncertainties, including rare-earth tariff tensions and lingering questions over Fed policy. As a result, traditional safe-haven assets like gold and silver have gained interest, while riskier holdings such as Bitcoin face increased selling pressure.

Bitcoin traded around $87,000 on Monday, hovering near its lowest level since December after a steady decline since mid-January erased nearly all of its monthly gains. The weakness reflects broad risk-off sentiment, as escalating global uncertainties have pushed investors away from risk assets. Geopolitical tensions, including President Donald Trump’s threat of 100% tariffs on Canadian imports, a sizable US naval deployment toward Iran, and rising chances of another US government shutdown, have driven flows into safe havens such as precious metals. The recent pullback has been intensified by a sharp rise in liquidations of leveraged crypto positions, adding further pressure on the market. Meanwhile, speculation about a more crypto-friendly Federal Reserve under a potential new chair offers limited support, as caution continues to dominate.