Analyst: Bitcoin has shifted to a bearish trend, with market sentiment heavily influenced by macroeconomic factors

On March 4th, cryptocurrency analysts pointed out that Bitcoin has now entered a bearish trend, and its weekend gains have completely disappeared. Although Trump's statement about cryptocurrency reserves temporarily halted the downward momentum, underlying macroeconomic issues still remain. In the past few days, Bitcoin's price has shown significant volatility. In essence, Trump's statement may only have superficially addressed a very serious issue. Last week, the cryptocurrency fear and greed index dropped to the lowest level since 2022. There are several reasons why Bitcoin is currently bearish. First, the macroeconomic situation is not a bullish factor for cryptocurrency. The Atlanta Fed's GDPNow model now predicts that by the end of the first quarter of 2025, the US GDP will contract by 2.8%. From an economic perspective, this forecast, compared to the 3.9% growth predicted four weeks ago, is considered catastrophic. Another significant factor is Trump's proposed tariff policy. Although some analysts believe that tariffs are not a major reason, when Trump recently announced a 25% tariff on the European Union, the cryptocurrency market experienced a sharp decline. In other words, macroeconomic factors largely influence the market sentiment of the cryptocurrency industry. Since the approval of the spot Bitcoin ETF, cryptocurrency has been deeply integrated with traditional finance. So if the US economy falls into a recession, the drawbacks of this integration will be fully exposed. (Jinse Finance)