Bitcoin’s price recently dipped to $83,500 on February 26th, marking its lowest point since November 2024. This sharp decline, exceeding $1 billion in leveraged long positions, has led analysts to attribute the bearish trend to growing fears of a global economic recession. While pressure from derivatives markets and weaker corporate earnings is also influencing Bitcoin’s performance below the $90,000 mark, the sell-off coincides with news of US President Donald Trump pushing for tariffs on imports from Canada and Mexico. This has led investors toward long-term US Treasury securities as a safe haven. Even gold, often seen as an investment during economic uncertainty, experienced a 2.2% decline in two days after reaching its all-time high of $2,956 on February 24th. This broader market trend reflects investor unease about the current economic climate. Bitcoin offers no dividends or clear benefits during recessions compared to established companies, making it a less desirable investment than the S&P 500, which is currently projected for strong year-over-year earnings growth of 16.9% in the fourth quarter. However, some critics point towards Strategy’s single-handedly driven price spike to $100,000 as a sign of Bitcoin’s potential limitations. Their stock performance has since dropped by 19.4% in seven days, suggesting investor skepticism about their plan to secure a massive $42 billion capital increase over three years. The upcoming Bitcoin monthly options expiry on February 28th is expected to contribute to price volatility, with traders expecting a lower price due to increased demand for fixed-income assets and rising gold prices. This has resulted in outflows from spot Bitcoin ETFs exceeding $1.1 billion on February 24th, according to Farside Investors data. The combination of market fear and high demand for safer investments has further damaged investor confidence, leaving the future uncertain.