Bitcoin fell below $81,000 on Saturday, extending weekend weakness as traders remained defensive amid geopolitical headlines, U.S. political uncertainty and lingering jitters across the cryptocurrency market.
The world’s largest cryptocurrency fell 2.2% in the past 24 hours, according to CoinGecko. Trading volumes taper off over the weekend, a situation that tends to make prices more susceptible to sudden swings.
Risk sentiment was hit by reports that an explosion occurred in Iran’s Bandar Abbas Port. Bandar Abbas Port is a key shipping hub in the Strait of Hormuz, handling about one-fifth of the world’s seaborne oil.
Although Iranian authorities said the cause was still under investigation, the incident heightened already tense relations between Tehran and Washington, prompting investors to stay away from riskier assets.
U.S. political uncertainty also weighed on the market. The federal government began a brief shutdown after Congress failed to pass a full-year appropriations bill by a midnight deadline. While the situation is expected to be short-lived, the miss adds to growing macro concerns, keeping traders cautious.
Cryptocurrency-specific factors are adding to the pressure. Bitcoin has struggled to attract sustained buying interest after a volatile month in January, with inflows into spot Bitcoin ETFs turning negative this week and derivatives markets still unleashing leverage built late last year. This backdrop leads to wild price swings and a tendency to sell off during quieter trading hours.
Recent public debates among prominent industry figures over the reasons for October’s historic liquidations have also kept people on edge and reinforced a sense that confidence has yet to be fully restored.
For now, Bitcoin remains range-bound, with traders watching to see whether the $80,000 to $82,000 area will attract new demand or lead to a deeper decline if the weekend sell-off persists.
