Bitcoin Slides to $86K Amid Market Turmoil as Investors Flee Risk Assets

Bitcoin experienced a sharp decline at the start of the week, dropping to approximately $86,000, reflecting ongoing concerns and instability in global financial markets. The drop is partially attributed to continued outflows from Bitcoin ETFs in the U.S., which recorded net withdrawals for five consecutive days last week, totaling $1.7 billion, nearly erasing previous gains.

Other major cryptocurrencies also faced declines, with Ethereum falling 5.7% to $2,872 and Ripple down 4% to $1.10, signaling heightened investor caution amid escalating geopolitical and economic tensions.

Meanwhile, gold surged past $5,000 per ounce as investors sought safe-haven assets amid the prevailing uncertainty.

Key Risks Impacting Market Sentiment:

• U.S. President’s threat of 100% tariffs on Canadian imports

• Movement of the U.S. naval fleet toward Iran

• Increased likelihood of another U.S. government shutdown

• Economic developments in Asia, including the weakening Japanese yen and China’s largest military purge in nearly 50 years

Market experts note that the early-week stability in prices does not indicate a strong rebound. Rather, it reflects a temporary pause, with insufficient inflows to support the digital asset market at this stage.