Despite the decline in the first quarter of the year, Bitcoin has maintained its lead over gold and the S&P 500 since Election Day, demonstrating the digital asset’s strength in the face of economic volatility and tight liquidity.

Bitcoin Outperforms Gold and S&P 500
In the first three months of the year, Bitcoin (BTC) is down nearly 12%, trading at $82,683.16. However, since Election Day, BTC is still up 22% from its opening price of $67,823.49.

In contrast, gold has posted a nearly 14% gain since November 5, peaking at over $3,100, while the S&P 500 has fallen about 3% over the same period. This shows that Bitcoin remains an attractive investment asset, despite difficult market conditions.

Pressure from Policy and Liquidity
According to the Bitfinex Alpha report, Bitcoin's decline in the first quarter was mainly due to a "sell the news" sentiment. Investors may have reacted negatively to the lack of clear progress in regulatory policies after President Donald Trump took office.

In addition, tight liquidity in the spot and derivatives markets is also a factor. Inflows into US spot Bitcoin ETFs - considered an important driving force - have slowed significantly since their launch, reducing the market's resilience.

In addition, the Federal Reserve (Fed) remains the focus of investors' attention. Monetary policy, inflation data, and interest rate guidance will play an important role in determining BTC price trends in the coming time.

Bitcoin Maintains Dominance, Altcoins Under Pressure
Despite the weakness in the crypto market, Bitcoin has shown strength as its share of the total market capitalization has increased to over 61%. This trend reflects investors moving away from altcoins in search of safety in BTC.

Ethereum (ETH) closed out its second-worst first quarter on record, losing over 45% of its value to trade at $1,832.80. Solana (SOL) also fell over 33% to $125.80, despite hitting a record high of $295.11 earlier.

Other altcoins such as BNB and Cardano (ADA) were also under corrective pressure, falling 13.6% and 22% respectively. However, XRP was a rare exception, increasing slightly by 1% to $2.10.

Looking Ahead
Investors remain cautious as Bitcoin continues to hover in the $78,000-$88,000 range. A sustained breakout would require a strong catalyst, such as favorable monetary policy or new money flowing into Bitcoin ETFs.

Still, Bitcoin’s continued gains since Election Day and its performance above both gold and the S&P 500 suggest that the asset’s long-term potential remains significant.