Despite Bitcoin (BTC) falling nearly 12% in the first quarter to $82,683.16 amid the market uncertainty, it has outperformed the S&P 500 and gold since Election Day.

Gold recently hit a new all-time high of over $3100, up by nearly 14% since Nov. 5. Conversely, the S&P 500 is down by roughly 3% in the same period.

Meanwhile, BTC has soared by since Election Day, climbing 22% from its opening price of $67,823.49

Investors selling the news and tight liquidity

The latest edition of the Bitfinex Alpha report noted that Bitcoin’s price slid in the first quarter due to a “sell-the-news” dynamic.

Traders potentially reassessed the lack of tangible regulatory progress after President Donald Trump took office, which has negatively impacted prices.

Additionally, tight liquidity conditions continue to shape market conditions, remaining constrained across spot and derivatives markets, and volatility has compressed since the early-year spike.

Inflows into US-listed spot Bitcoin ETFs are being tracked for directional cues, though flows have slowed since the initial launch.

In addition to these two indications, the report highlighted that traders are closely watching for shifts in Federal Reserve policy, particularly regarding inflation data and interest rate guidance.

While signs of capitulation have subsided, market participants remain cautious. The report highlighted that sustained price movement beyond the current range of $78,000 and $88,000 is unlikely in the near term without a significant catalyst.

Altcoins continue to struggle

Despite the decline, Bitcoin’s relative strength has grown in the context of a broader crypto market downturn. BTC’s dominance, its share of the total crypto market capitalization, has increased to over 61%. 

This shift reflects a rotation out of altcoins and into Bitcoin as investors reduce risk exposure, further highlighted by the movement shown by major-cap altcoins.

Ethereum (ETH) is closing its second-worst first quarter in history, down over 45% and priced at $1,832.80 as of press time. Meanwhile, Solana (SOL) was trading at $125.80, down over 33% in the first quarter despite registering a new all-time high at $295.11.

Other major assets, such as BNB and Cardano (ADA), are also down in the first quarter, registering corrections of 13.6% and 22%, respectively. The exception is XRP, which was up by 1% and trading at $2.10 as of press time.

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