Bitcoin, or digital gold as it is sometimes called, seems to be as far removed as possible from such a picture. After hitting a high of US$109,000 in March of 2025, Bitcoin fell sharply by around 24 percent and traded at under US$90,000 by the end of February. Several factors have contributed to this fluctuation:
Market sensitivity: While marketed as an uncorrelated asset, Bitcoin has been proven sensitive to macroeconomic environments and market mood, hence causing sharp price movements-dramatic and profound.
Security issues: Not very famous security breaches in cryptocurrencies have put confidence in the investor in the red flame regarding digital asset holding, signaling the risk.
Regulatory ambiguity: Ongoing uncertainty surrounding regulatory guidelines keeps investor wariness and institutional reluctance high in crypto markets.
