Escalating global geopolitical tensions have driven a risk-off wave across markets, with Bitcoin suffering a sharp sell-off on Sunday to hit its lowest level since 2026. Although the cryptocurrency regained some ground during Asian trading on Monday, analysts caution that the bounce may be short-lived.
Bitcoin Tumbles 3.5% to $86,000
The world's largest digital asset plunged 3.5% on Sunday, briefly touching just above $86,000, a level not seen since 2026. It later recovered to $87,733 by Monday morning in Singapore, but the recovery remained fragile. Ethereum also took a hit, dropping as much as 5.7% before recovering 2% to trade at $2,872, near its lowest since mid-December. Investors pulled money from risk assets and rotated into traditional havens like gold.
Spot ETFs See Five-Day Outflow of $1.7 Billion
US spot Bitcoin ETFs experienced sustained selling last week. According to data compiled by Bloomberg, net outflows totaled $1.7 billion over five consecutive trading days, nearly erasing the net inflows from the previous four days. The exodus from ETFs reflects institutional caution as geopolitical risks mount, adding further downward pressure on Bitcoin's price.
FalconX: Rebound a 'Brief Respite'
Sean McNulty, head of Asia-Pacific derivatives trading at FalconX, described Monday's price stabilization as “more of a brief respite than a strong rebound.” “As of this morning, we haven't seen massive inflows,” he told Bloomberg. The lack of significant new capital suggests the market is still in wait-and-see mode, with geopolitical developments likely to dictate near-term direction.
Source: Adapted from a Bloomberg report by Suvashree Ghosh, via BlockTempo.