Bitcoin prices slipped below the $88,000 mark on Monday, extending a broader pullback across digital assets as investor risk appetite continued to fade. The world’s largest cryptocurrency traded near $87,900, down sharply from its recent peak close to $95,500. The wider crypto market fell nearly 1% over the past 24 hours and has declined more than 6.6% over the past week.
Losses were broad-based. Ethereum dropped to around $2,880, while Solana, XRP, and Cardano also moved lower. Volatility triggered aggressive deleveraging, with more than $154 million in Bitcoin positions liquidated in a single day, the majority tied to bullish bets.
The retreat highlights growing caution among traders as macroeconomic uncertainty rises and speculative assets struggle to regain momentum after a strong start to the year.
Gold Breaks Records as Risk Aversion Grows
While cryptocurrencies weakened, gold surged to historic highs. Spot gold jumped above $5,000 per ounce during Asian trading and later touched $5,089, reflecting a sharp shift toward safe-haven assets. Analysts attribute the move to rising geopolitical tensions, concerns over global economic stability, and renewed debate over the long-term independence of U.S. monetary policy.
Key drivers behind gold’s rally include:
- Escalating geopolitical risks and trade tensions
- Uncertainty surrounding future Federal Reserve policy
- Increased demand for inflation-hedging assets
Some analysts now project gold could test $5,100 if momentum remains intact. The rally underscores investor unease, particularly as traditional risk assets show signs of strain.
ETF Outflows, Politics Pressure Bitcoin Outlook
Bitcoin’s weakness has also been fueled by institutional withdrawals. U.S. spot Bitcoin ETFs recorded net outflows of approximately $1.33 billion between January 19 and January 23. Ethereum-linked ETFs were not spared, losing $611 million over the same period, including a $432 million redemption from BlackRock’s ETHA fund.
Regulatory uncertainty has added to the pressure. Coinbase’s withdrawal of support for the proposed CLARITY Act has raised concerns over stalled crypto legislation, while fears of a potential U.S. government shutdown further cloud the outlook.
Additional pressure came after former President Donald Trump threatened 100% tariffs on Canadian goods, reigniting trade tensions and triggering roughly $100 million in crypto market outflows.
From a technical perspective:
- Bitcoin support sits near $86,000, followed by $84,000
- Immediate resistance is seen at $90,000, then $92,000
- RSI remains weak at 40.75, below neutral levels
With key Federal Reserve data, interest-rate decisions, and liquidity signals due this week, Bitcoin’s near-term direction remains vulnerable to macro-driven volatility.
