TariffDeal

🚨 Bitcoin Price Dips After U.S.–China Tariff Deal — Here's Why 📉

Bitcoin (BTC) briefly surged to $105,720 on May 12, hitting a three-month high, but then quickly dropped to $102,443, surprising traders who expected the U.S.–China tariff truce to boost BTC. 🤔📉

Why the dip?
While stocks rallied after the 90-day tariff reduction between the U.S. and China, Bitcoin lagged behind. Here's why:

🔑 Key Points:

BTC dropped 3.1% after hitting $105.7K, despite the tariff deal.

Stock market rally seen as a direct beneficiary of the tariff cut — stocks over Bitcoin.

Gold & Bitcoin underperformed as demand for scarce assets fell.

BTC’s 83% correlation with the S&P 500 limits its upside potential in a risk-on market.

Despite the dip, $2B in inflows into U.S. spot Bitcoin ETFs from May 1-9 remain strong.

🌐 Macro Headwinds:
Bitcoin had already surged 24% in the past 30 days, while the S&P 500 rose 7%. But investors were focused on stocks as the deal is seen as bullish for equities, not decentralized, non-yielding assets like BTC. 📊

🛑 Large Holdings and Market Concentration:
Big players like Strategy (13,390 BTC) and BlackRock now control over 1.19 million BTC — about 6% of the supply! 🏦

💪 Why $100K Support Could Hold:
Despite the pullback, institutional-driven price consolidation is happening. $2B in ETF inflows and the market structure remain bullish, making a $100K support level likely to hold.

#Bitcoin #BTC #CryptoNews #TariffDeal #S&P500