Bitcoin's price has experienced a notable decline, down 12.7% since early March, despite claims of being a non-correlated asset. This drop coincides with a broader stock market sell-off and is characterized as Bitcoin's worst Q1 performance in seven years, attributed to various economic pressures like tariffs and inflation. MicroStrategy, led by Michael Saylor, continues to buy BTC aggressively, raising confidence in Bitcoin's long-term valuation. The current fearful sentiment among investors is driven by extreme conditions impacting investment strategies, where Bitcoin does not fit within risk-off approaches.
Bitcoin's fractional declines in the past 24 hours pale in comparison to stocks today, yet it is down 12.7% since early March. Investors are currently fearful.
Bitcoin's Q1 performance was the worst showing in seven years, owing to a perfect storm of tariffs, inflation and an economic slowdown. Long-term fundamentals remain intact.
MicroStrategy has been feverishly buying BTC, including $1.9 billion worth for a portfolio of 528,185 bitcoins, suggesting confidence in future recovery despite current market conditions.
If bitcoin is supposed to be a non-correlated asset, why has it been taking cues from the economy? A fearful investment community points to the extreme fear index.
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