Bitcoin (BTC) slipped to $83,500 on Feb. 26, its lowest price since November 2024, following a sharp three-day decline of $12,820. This plunge erased over $1 billion in leveraged long positions, according to CoinGlass data. Analysts attribute the downturn to mounting fears of a global economic recession, along with pressure from derivatives markets and weaker corporate earnings, which have kept BTC below the $90,000 mark.
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The sell-off coincides with news of U.S. President Donald Trump advocating for tariffs on imports from Canada and Mexico, prompting investors to seek refuge in long-term U.S. Treasurys. Even gold, a traditional safe-haven asset, has not been immune to the uncertainty, dropping 2.2% over two days from its record high of $2,956 on Feb. 24.
Unlike well-capitalized Big Tech firms, Bitcoin does not provide dividends or the ability to capitalize on downturns by acquiring undervalued competitors. This makes the S&P 500 a more attractive hedge for investors. Analysts, including John Butters from FactSet, forecast a robust 16.9% year-over-year earnings growth for the fourth quarter, strengthening equities’ appeal.
Meanwhile, concerns loom over MicroStrategy’s role in Bitcoin’s price movement. Critics argue that the company played a pivotal role in pushing BTC to $100,000, but its ability to sustain such influence remains uncertain. MicroStrategy’s stock has plummeted 19.4% in the past week, reflecting investor doubts about its ambitious $42 billion capital raise over the next three years. This uncertainty raises questions about Bitcoin’s ability to maintain its value without institutional backing.
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