Bitcoin may set the longest monthly losing streak since 2018

Foresight News reported, citing Bloomberg, that due to rising risk aversion and intensified competition from traditional safe-haven assets, bitcoin is facing its longest monthly losing streak in about seven years. In January this year, bitcoin has already fallen nearly 6%, potentially recording a loss for the fourth consecutive month. This would mark the longest monthly losing streak since the ICO bubble burst in 2018. On Friday, bitcoin once dropped 3.9% to around $81,100, hitting its lowest level since late November last year. Meanwhile, traditional safe-haven assets such as gold and silver both reached new highs this week.

Matt Howells-Barby, vice president of an exchange, stated that concerns over the mismatch between large tech companies' massive AI investments and their returns are shaking market sentiment for risk assets. In addition, the market expects that Donald Trump may nominate hawkish figure Kevin Warsh as the next Federal Reserve chair, which has led traders to lower their expectations for policy easing, putting pressure on growth-sensitive assets such as bitcoin.