Bitcoin Experiences Sustained Contraction: When Risk Aversion Dominates the Market

WalletsWatcher · 2026-02-09T22:09:03+00:00

Bitcoin is experiencing a prolonged downturn, marking its longest monthly loss streak in nearly seven years, with a 22.24% drop. In contrast, traditional safe-haven assets like gold and silver are thriving, as investors shift towards stability amidst rising risk aversion in financial markets.

WalletsWatcher

2026-02-09 22:09:03

Abstract generation in progress

Bitcoin is going through a critical period marked by increasing risk aversion that characterizes today’s financial markets. According to Bloomberg reports, the leading cryptocurrency has experienced its longest monthly decline in nearly seven years, reflecting a significant shift in market dynamics. This outlook contrasts sharply with the strength shown by traditional safe-haven assets, which in recent weeks have reached new all-time highs.

Four Consecutive Months of Negative Returns

Bitcoin’s streak of monthly losses is the longest since the collapse of the 2018 ICO bubble. In February, the cryptocurrency has already recorded a decline of approximately 22.24% over the past 30 days, trading around $70,370 in recent days. This deterioration marks the fourth consecutive month of negative performance, a milestone not seen in nearly seven years. The recent low point represents a significant retreat from the prices the coin maintained just a few months ago.

Safe-Haven Assets: The Winners in Times of Aversión

While Bitcoin continues its downward trend, traditional safe-haven assets, particularly gold and silver, have experienced notably better performance. The strengthening of these assets precisely reflects the risk aversion that characterizes the behavior of institutional and retail investors today. The search for safety and stability is shifting capital away from more speculative instruments toward historically proven safe alternatives.

The current market dynamics highlight how risk aversion influences global capital flows, penalizing more volatile assets like cryptocurrencies while boosting demand for traditional defensive assets. This pattern suggests that Bitcoin’s recovery will largely depend on a reversal in the prevailing risk sentiment.

BTC0,67%

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.