Bitcoin Nearing a Fourth Straight Month of Negative Monthly Returns…Longest Streak Since 2018

Bitcoin (BTC) is increasingly likely to post its longest slump since 2018, as risk-off sentiment spreads and safe-haven assets strengthen.

On the 30th (Korea time), Bloomberg reported that Bitcoin has fallen about 6% so far in January, putting it on track for a fourth consecutive month of negative monthly returns.

That would mark the longest stretch of consecutive monthly declines since 2018. Back then, the market slid into a downturn after the collapse of the initial coin offering (ICO) boom.

As of 5:50 p.m. today, Bitcoin was down 6.16% from the previous day at $82,504. It fell as low as $81,100 intraday, but has since pared some of its losses.

Broader uncertainty across financial markets is also weighing on sentiment. As speculation grows that monetary policy could turn more hawkish than expected in connection with the selection of the next chair of the U.S. Federal Reserve (Fed), expectations for rate cuts have retreated, prompting selling pressure across risk assets including equities and crypto, according to the analysis.

Matt Howells-Barby, vice president at Kraken, said, “While Big Tech companies are deploying massive investment in artificial intelligence (AI), the returns sufficient to justify it have yet to materialize, adding to market anxiety,” adding, “With credit spreads already very tight and the market having been deep in a risk-on phase, investors are starting to reassess their risk exposure.”