Bitcoin Falls to $69.87K Amidst the Biggest Risk Aversion in Years

Bitcoin faces one of its most challenging periods, currently trading around $69,870 after losing 27.83% over the past 30 days. This correction reflects a marked risk aversion that has prevailed in global financial markets, prompting investors to abandon more volatile assets in search of safety.

Four Months of Consecutive Declines – The Longest Streak Since 2018

The cryptocurrency has completed its fourth consecutive month in negative territory, marking the longest cycle of monthly losses since the collapse of the ICO speculative bubble in 2018. This downturn sharply contrasts with the optimism that prevailed in the crypto sector just a few months ago.

Bloomberg reports that this downward trend is mainly due to the widespread aversion to speculative assets. With investors primarily focused on reducing risks, the momentum that previously characterized the cryptocurrency market has been replaced by a more defensive strategy.

Traditional Safe-Haven Assets Reach All-Time Highs

While Bitcoin and other risk assets face difficulties, markets have shown an unequivocal preference for considered safe instruments. Gold and silver have reached new highs during this period, solidifying their historic role as a hedge against risk aversion. This asymmetric behavior underscores how market aversion is reallocating capital toward assets with lower volatility and perceived greater stability.

The divergence between Bitcoin and these traditional assets reflects a fundamental shift in investor psychology, where the pursuit of returns has been displaced by the need to preserve capital in an uncertain macroeconomic environment.