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Sunday, Feb 01, 2026
Outside the box.
Bitcoin Falls to Lowest Levels Since 2025 Tariff Shock as Risk Appetite Ebbs
Cryptocurrency retreats toward seventy‑seven thousand dollars amid geopolitical strain, regulatory shifts and shifting investor preferences
Bitcoin’s market price has slipped sharply in early 2026, touching levels not seen since the aftermath of last year’s tariff shock that sent crypto and broader markets reeling.
Over the weekend, the flagship cryptocurrency fell below seventy‑seven thousand dollars before recovering modestly toward the high seventy‑thousands, leaving it down more than ten per cent since the start of the year in a stark reversal from its record peaks in late 2025. The sell‑off has unfolded even as traditional safe‑haven assets such as gold surged, at one point trading above five thousand six hundred dollars per troy ounce, as investors favoured perceived stability amid rising geopolitical and macroeconomic pressures.
Analysts note that bitcoin’s reputation as “digital gold” has weakened in the face of fresh uncertainty, with market participants increasingly treating it as a high‑beta risk asset rather than a store of value.
Investors have cited a confluence of factors for the downturn, including heightened geopolitical tensions—centred on tariff disputes involving major economies—as well as uncertainty around monetary policy and changes in central bank leadership that have dampened broader risk sentiment.
Some analysts argue that bitcoin’s recent downturn reflects a broader retreat from risk assets, as capital rotates into commodities and traditional instruments perceived to offer protection against volatility.
The slide has also coincided with technical pressures in crypto markets, with heightened liquidation activity and growing interest in alternative trading mechanisms such as prediction markets and crypto derivatives platforms.
What we can confirm is that bitcoin’s price fell to its lowest level since the tariff‑linked sell‑off of 2025 and has weakened significantly this year; what’s still unclear is the extent to which this sell‑off will persist versus representing a consolidation ahead of potential policy shifts or renewed demand drivers.
Despite the recent trough, some institutional flows into bitcoin exchange‑traded funds and reduced exchange holdings point to ongoing demand that could help temper further declines.
Bitcoin’s path forward is likely to remain tied closely to global economic developments, market liquidity conditions and broader investor confidence in digital assets.
Over the weekend, the flagship cryptocurrency fell below seventy‑seven thousand dollars before recovering modestly toward the high seventy‑thousands, leaving it down more than ten per cent since the start of the year in a stark reversal from its record peaks in late 2025. The sell‑off has unfolded even as traditional safe‑haven assets such as gold surged, at one point trading above five thousand six hundred dollars per troy ounce, as investors favoured perceived stability amid rising geopolitical and macroeconomic pressures.
Analysts note that bitcoin’s reputation as “digital gold” has weakened in the face of fresh uncertainty, with market participants increasingly treating it as a high‑beta risk asset rather than a store of value.
Investors have cited a confluence of factors for the downturn, including heightened geopolitical tensions—centred on tariff disputes involving major economies—as well as uncertainty around monetary policy and changes in central bank leadership that have dampened broader risk sentiment.
Some analysts argue that bitcoin’s recent downturn reflects a broader retreat from risk assets, as capital rotates into commodities and traditional instruments perceived to offer protection against volatility.
The slide has also coincided with technical pressures in crypto markets, with heightened liquidation activity and growing interest in alternative trading mechanisms such as prediction markets and crypto derivatives platforms.
What we can confirm is that bitcoin’s price fell to its lowest level since the tariff‑linked sell‑off of 2025 and has weakened significantly this year; what’s still unclear is the extent to which this sell‑off will persist versus representing a consolidation ahead of potential policy shifts or renewed demand drivers.
Despite the recent trough, some institutional flows into bitcoin exchange‑traded funds and reduced exchange holdings point to ongoing demand that could help temper further declines.
Bitcoin’s path forward is likely to remain tied closely to global economic developments, market liquidity conditions and broader investor confidence in digital assets.
