Bitcoin's price fell below $87,000 on January 26, erasing all gains made earlier in the month and marking a 10.9% decline from its January 14 peak of over $97,000. The cryptocurrency's return for January now stands at -0.5%. The decline is attributed to factors such as geopolitical risks, the diminishing perception of Bitcoin as a safe-haven asset, a slower pace of interest rate cuts by the Federal Reserve, outflows from institutional ETFs, and market deleveraging.
Historically, Bitcoin has averaged a January return of +3.81% since 2013, with a median return of +0.62%. Over the past 13 years, January has seen positive returns in 7 years and negative returns in 6 years.
Bitcoin Drops 10.9% from January High, Erases Monthly Gains
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