Bitcoin Extends Losses Amid Broader Market Uncertainty
Cryptocurrency Bitcoin continued its downward trajectory on Monday, deepening losses in a volatile trading session that reflected broader market unease and a retreat from risk-heavy assets. The world's largest digital currency declined by approximately 2 per cent, with a sharp intraday drop of up to 5 per cent that briefly pushed its price below the US$65,000 threshold before a partial recovery trimmed some of the decline.
Pressure on Crypto-Linked Equities
The slump in Bitcoin exerted significant pressure on related equities, as reported by Reuters. Major players in the crypto space, including Coinbase Global and Strategy, both experienced declines of more than 1 per cent, highlighting the interconnected nature of digital asset markets and traditional financial instruments.
Fragile Sentiment Driven by Tariff Uncertainty
Market sentiment remained fragile as investors grappled with renewed uncertainty surrounding global trade policies. This anxiety was fueled by US President Donald Trump's announcement of a new 15 per cent global duty, coming on the heels of a recent US Supreme Court ruling that invalidated most earlier levies. The development has prompted a cautious reassessment of risk across various asset classes.
Bitcoin's Struggle to Regain Momentum
Often touted as "digital gold," Bitcoin has faced challenges in sustaining the momentum from last year's rally. The token is now down nearly half from its October peak near US$126,000. Analysts attribute this decline to a combination of factors, including profit-taking by investors, ongoing regulatory concerns, and a shifting appetite for risk in the current economic climate.
Shift Towards Traditional Safe Havens
In contrast to the downturn in cryptocurrencies, precious metals saw gains, lifting gold and silver miners as investors rotated toward traditional safe-haven assets. This movement underscores a broader trend of capital flowing away from volatile digital currencies and into more established stores of value during periods of market stress.
