FX.co ★ Bitcoin Holds Near December Lows

Bitcoin traded approximately at $87,000 on Monday, lingering close to its lowest levels since December. This decline, persisting since mid-January, has nearly obliterated its monthly gains. The drop in value mirrors a broad risk-averse sentiment among investors due to escalating global uncertainties. Geopolitical issues, such as President Donald Trump's declaration of a potential 100% tariff on Canadian imports, a significant deployment of the US navy toward Iran, and increasing prospects of another US government shutdown, have led investors to flock to safe-haven assets like precious metals. The recent market contraction has been exacerbated by a significant increase in the liquidation of leveraged cryptocurrency positions, further straining the market. Despite some speculation about a potentially more crypto-friendly Federal Reserve under a new chair, cautious sentiment continues to prevail.