Bitcoin price sells off after Trump’s US-China tariff deal — Here is why
Bitcoin (BTC) reached a three-month high of $105,720 on May 12 but fell to $102,000, puzzling traders despite a temporary easing in the US-China tariff conflict. The 90-day truce reduced import tariffs, with discussions on currency manipulation and semiconductor export restrictions. Bitcoin's recent lack of momentum is linked to its 24% gains over the past month, while S&P 500 futures rose 7%. Bitcoin has surpassed the market capitalization of silver and Google, becoming the sixth-largest tradable asset. Concerns arose as Strategy acquired 13,390 BTC, raising fears about price support. Critics predict potential losses for Strategy due to high average purchase prices. Broader macroeconomic conditions favor stocks over Bitcoin, with a strong US dollar impacting demand for scarce assets. Despite a decline in gold prices, $2 billion inflows into US spot Bitcoin ETFs indicate steady institutional demand, suggesting a low likelihood of Bitcoin dropping below $100,000.
