Bitcoin's price has seen a dramatic decline, plunging by $10,000 within 24 hours, raising concerns about its viability as a safe haven asset.

On March 3, 2025, Bitcoin's value dropped nearly 10% due to fears surrounding increased U.S. cryptocurrency regulations, followed by an additional 2% decline the next day.

This significant drop in Bitcoin's value is part of a larger trend, with the entire crypto market losing over $300 billion, indicating a shift in investor preference towards traditional safe havens.

In contrast, gold has been gaining traction, consolidating gains close to its all-time highs as economic uncertainty continues to rise.

Market concerns were exacerbated by former U.S. President Donald Trump's announcement of a doubling of tariffs on China, which ruled out exemptions for Mexico and Canada.

As a result of these developments, Bitcoin is increasingly perceived as a risky asset amid rising trade tensions and economic instability.

Despite the short-term volatility, Bitcoin's long-term prospects remain positive, bolstered by growing institutional interest and the emergence of Bitcoin ETFs.

While Bitcoin has decreased by 10% since the start of the year, gold prices have risen by 10%, highlighting a stark divergence in their performances.

The future of Bitcoin's status as a safe haven asset remains uncertain, influenced by ongoing geopolitical risks and regulatory developments.

As of March 6, 2025, Bitcoin is trading at $92,200, attempting to break through a resistance level of $94,900, while key support levels are identified at $88,300 and $85,300.

Experts suggest that while gold remains a better option for capital preservation, Bitcoin offers a unique opportunity due to its limited supply and increasing institutional acceptance.

Regulatory concerns and macroeconomic instability are challenging Bitcoin's safe haven status, with over $1 billion in liquidations occurring following the tariff announcement.