Bitcoin fell to a two-month low in early Asian trading on Friday as cryptocurrency market sentiment continued to cool and investors withdrew funds from Bitcoin ETFs.

Bitcoin fell as much as 3.9% to $81,102 in Singapore on Friday, its lowest level since November 21, extending the overnight decline. Bitcoin has fallen more than 34% from its all-time high reached on October 6 last year.

Data shows that 12 Bitcoin ETFs listed in the US have experienced net redemptions for three consecutive months, with a net outflow of approximately $4.8 billion. If this trend continues until the end of January, it will mark the longest period of sustained net outflows for Bitcoin ETFs since their listing in 2024.

Bitcoin's weak performance contrasts sharply with the recent surge in precious metals such as gold. Faced with geopolitical risks, investors are favoring traditional safe-haven assets, casting doubt on the claim that Bitcoin can serve as a form of "digital gold."

"Suddenly, cryptocurrencies no longer seem to be seen as an alternative to fiat currency, nor as a tool to hedge against the financial policy risks of major economies," said Alex Kuptsikevich, chief market analyst at FxPro.

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