Bitcoin falls 22.6% in Q1 amid regulatory delays and AI concerns, but shows resilience versus traditional assets.

Bitcoin dropped 22.6% in the first quarter, its worst start in 16 years, driven by legislative delays, AI-related investor worries, and Federal Reserve leadership uncertainty. Despite early losses, Bitcoin stabilized in March and outperformed traditional safe havens like gold and U.S. Treasuries amid rising geopolitical tensions. Regulatory progress on stablecoin rules stalled, but agencies advanced oversight coordination, while institutions expanded crypto infrastructure. AI and quantum computing concerns influenced mining behavior and market sentiment. Analysts see Q1 as a corrective phase, with future Bitcoin performance shaped by regulatory clarity, structural demand, and technological adaptation, though volatility may persist.