Bitcoin is poised to record its fifth consecutive weekly decline, marking its longest losing streak since early 2022. As of Thursday, the cryptocurrency has fallen approximately 3% this week, trading below $67,000, which raises concerns about a potential further drop by the week’s end.
The recent downturn is influenced by escalating geopolitical tensions, particularly in the Middle East, which have bolstered the U.S. dollar and crude oil prices. The dollar index has reached 97.7, its highest level since early February, while West Texas Intermediate (WTI) crude oil prices have surged from $62 to $65.
This combination of factors is exerting additional pressure on risk assets, including Bitcoin. The cryptocurrency has declined over 50% from its all-time high of nearly $126,500 recorded in October. Furthermore, Bitcoin has experienced five consecutive monthly losses since October, marking its second-longest losing streak on record, surpassed only by a six-month decline from 2018 to 2019.
In the context of its performance against gold, Bitcoin has underperformed for seven consecutive months, representing its longest stretch of weakness in that comparison.
Macro-economic pressures are also contributing to Bitcoin’s struggles. Reports indicate that the U.S. has deployed its largest concentration of air power in the Middle East since the 2003 Iraq invasion, with potential military action against Iran being considered. Current market sentiment reflects a 27% probability of strikes occurring by the end of the month, according to Polymarket bettors.
In related news, Coinbase has announced an expansion of its crypto-backed lending service, allowing holders of XRP, Dogecoin, Cardano’s ADA, and Litecoin to borrow up to $100,000 without selling their assets. This service, powered by the Morpho protocol, is available nationwide, excluding New York. However, it carries risks, including potential liquidation if collateral values decline.
Bitcoin is experiencing its longest losing streak since 2022, driven by geopolitical tensions that have strengthened the U.S. dollar and crude oil prices. The cryptocurrency has seen significant declines in both weekly and monthly performance, raising concerns among investors.