Insight: Escalating Geopolitical Tensions Combined with Thinning Weekend Market Liquidity Lead to Bitcoin Testing $81,000

BlockBeats News, January 31st, analysts pointed out that due to escalating tensions in the Middle East, a partial U.S. government shutdown, and the thin weekend market liquidity, Bitcoin dropped to $81,000.

The explosion at the port of Abu Qasr in Iran hit the market's risk appetite, as the port is a key shipping hub in the Strait of Hormuz, responsible for about one-fifth of global seaborne oil shipments.

At the same time, the U.S. Congress failed to pass a full-year appropriations bill before the deadline, leading to a brief weekend shutdown of the federal government. Although the shutdown is expected to be short, it exacerbated concerns about the macroeconomy, prompting traders to remain cautious.