Bitcoin dropped to a fresh ten-month low during Asian trading hours on Monday, extending a sell-off that began over the weekend and underscoring fragile sentiment across global risk assets.

The world’s largest cryptocurrency fell as much as 2.5% to $74,541, coming close to the $74,425 level recorded on April 7 last year. By noon in Singapore, the token remained below $76,000, unable to recover meaningfully from the sharp decline.

The fall caps a difficult stretch for Bitcoin. The cryptocurrency shed nearly 11% in January, marking its fourth straight monthly decline. This is the longest losing streak since 2018, a period that followed the collapse of the initial coin offering boom. The current weakness is occurring in an environment of broader financial market unrest, with even traditional safe-haven assets like gold witnessing steep declines after suffering their largest plunge in more than a decade at the end of last week.

According to Caroline Mauron, co-founder of Orbit Markets, Bitcoin is now approaching levels last seen in April 2025 after what she referred to as “Liberation Day.” She noted that a further drop below the 2021 highs around $70,000 would represent a significant long-term confidence shock for the asset class.

The weakness is not limited to Bitcoin. Other major cryptocurrencies also traded lower, with Ether falling 2.9% and Solana declining 1.2%, indicating a broader retreat from digital assets rather than isolated selling pressure.

What is notable in the current phase is the correlation between crypto weakness and turbulence in traditional markets. Bitcoin, often promoted as a hedge against macroeconomic uncertainty, is once again behaving like a high-beta risk asset. As global investors reduce exposure to volatile instruments, crypto appears to be among the first segments to witness outflows.

The fact that gold is also declining sharply adds another layer of complexity.

Typically, falling gold prices would suggest rising real yields or a stronger dollar environment, both of which can be negative for non-yielding assets like cryptocurrencies. The simultaneous decline in both gold and Bitcoin signals that investors may be prioritising liquidity and safety over alternative stores of value.

This episode highlights how sentiment-driven the crypto market remains. Despite the growing institutional participation seen over the past few years, price movements continue to be heavily influenced by shifts in global risk appetite rather than intrinsic fundamentals.

For investors tracking digital assets, the current levels are psychologically significant. The $70,000 mark corresponds to the previous cycle’s peak from 2021. A decisive breach below that level could change the narrative from “correction within a bull cycle” to concerns about a deeper structural downtrend.

From an Indian market perspective, the implications are indirect but relevant. A large section of Indian retail investors participates in global crypto markets through exchanges and offshore platforms. Sustained declines in Bitcoin and other tokens can affect retail risk appetite more broadly, influencing participation in high-risk segments such as small-cap equities, derivatives trading, and thematic technology plays.

Indian fintech platforms and crypto exchanges that depend on trading volumes may also see a slowdown in activity if the current downtrend persists. Historically, falling crypto prices tend to reduce trading enthusiasm and new account openings, impacting revenue visibility for such platforms.

While India’s regulated financial system has limited direct exposure to cryptocurrencies, retail investor behaviour often mirrors global risk trends. Prolonged weakness in Bitcoin may dampen speculative appetite among younger investors, potentially reducing flows into high-volatility equity segments and leveraged trading products.