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.
