Bitcoin Endures Its Worst Stretch Since 2018 as Market Risk Aversion Peaks

According to Bloomberg data shared by Foresight News, Bitcoin is currently grappling with a significant price downturn driven by mounting risk aversion across global markets. The cryptocurrency has already declined nearly 6% during January alone, positioning it on track for its fourth consecutive month of losses. This performance stands out as the most severe losing streak seen in the crypto market since the infamous collapse of the ICO bubble back in 2018, when Bitcoin faced similar prolonged pressure.

Comparing Current Price Action to Historic 2018 Moments

The parallels to 2018 are striking as Bitcoin confronts sustained selling pressure. Recently, the cryptocurrency retreated to approximately $70,330, reflecting the ongoing bearish momentum that has gripped digital assets. The current downtrend mirrors the extended weakness that characterized the post-2018 bear market, though the underlying market dynamics differ significantly from that era.

Traditional Safe-Haven Assets Rally While Crypto Faces Headwinds

Interestingly, as Bitcoin struggles, traditional defensive investments are flourishing. Gold and silver have both reached fresh highs this week, underscoring investors’ flight toward conventional hedges during periods of heightened uncertainty. This dynamic—where digital assets weaken while traditional safe-haven alternatives strengthen—reflects the broader shift in market sentiment as risk-off conditions dominate, drawing capital away from speculative positions and toward assets perceived as more stable and predictable.