As of March 4th, recent analyses indicate that Bitcoin has transitioned into a **bearish trend**, with gains made over the weekend dissipating entirely. While former President Trump’s remarks regarding cryptocurrency reserves provided a fleeting pause in the downward trajectory, persistent macroeconomic challenges continue to loom large. In recent days, Bitcoin’s price has displayed notable volatility, reflecting a market increasingly sensitive to external economic pressures.
The latest cryptocurrency fear and greed index dropped to its lowest level since 2022, reinforcing the bearish outlook. Several factors contribute to this pessimism, particularly the deteriorating macroeconomic landscape. The Atlanta Fed’s GDPNow indicator forecasts a 2.8% contraction in U.S. GDP by the end of Q1 2025, a stark downgrade from a prior 3.9% growth estimate. Additionally, Trump’s tariff policies, notably the 25% tariff on the European Union, exert negative influence, manifesting in sharp market declines.
Furthermore, as the cryptocurrency sector increasingly intertwines with traditional finance following the approval of a spot Bitcoin ETF, the potential drawbacks of this integration become more apparent in a recessionary scenario. The sentiment within the crypto market remains heavily tied to prevailing macroeconomic conditions, emphasizing the need for cautious navigation ahead.