Bitcoin's value continued to slide, trading as low as $64,830 early on and marking a nearly 5% decline that started a day earlier. Over the weekend, this downturn pushed the digital currency to a new low of $64,324, its weakest point since February 6, when it was valued at $60,062.
The decline in the world's oldest cryptocurrency is largely attributed to rising geopolitical and macroeconomic uncertainties, which have prompted investors to shy away from risk-on investments.
Contributing to this sentiment, last week, U.S. President Donald Trump announced that he would decide on potential military action against Iran within 'the next probably 10 days' due to Iran's reluctance to agree to a new nuclear deal. In recent days, tensions have escalated as the U.S. continues to bolster its military presence throughout the Middle East.
Additionally, Trump declared on social media that he would increase retaliatory tariffs to 15% against various foreign trade partners, effective immediately. This decision followed a Supreme Court ruling that invalidated his previous trade taxes.
Since the start of the year, Bitcoin has seen a 24% decrease amid escalating macroeconomic threats, whereas assets perceived as safer, like precious metals, have enjoyed significant gains. Gold has appreciated by approximately 20%, while silver has risen by 23% in the same timeframe.