Why is the $BTC BTC Price Declining?

Based on recent market analysis, several factors are contributing to Bitcoin’s price decline as of May 15, 2025:

Macroeconomic Pressures and Tariff Concerns: U.S. tariffs imposed on imports from Canada, Mexico, and China (25% on Mexican/Canadian imports, 10% on Chinese goods) are seen as inflationary. This reduces expectations for Federal Reserve rate cuts, putting downward pressure on non-interest-bearing assets like Bitcoin. The crypto market has shown correlation with U.S. equities, which have also faced volatility due to these trade tensions.

Waning Institutional Demand: Spot Bitcoin ETFs have experienced significant outflows, with $964 million in net outflows between March 28 and April 15, 2025, signaling reduced institutional buying. This lack of fresh capital increases selling pressure as supply outpaces demand.

Low Whale Accumulation: Whale holdings have declined by approximately 30,000 BTC over a week in April 2025, with monthly accumulation dropping to 0.5% from 2.7%. This reduced activity from large holders limits bullish momentum.

Selling Pressure from Short-Term Holders (STHs): STHs, holding coins for less than 155 days, are selling at a loss, with 3.4 million BTC in loss as of March 2025. This “top-heavy” market structure adds downward pressure.

Technical Factors and Market Sentiment: Bitcoin has faced rejections at key resistance levels (e.g., $104,000–$106,000) and is showing bearish signals like a “death cross” on the daily timeframe, dampening short-term rally hopes. Posts on X also indicate price compression and bearish momentum on shorter timeframes.

Liquidity Contraction: Onchain transfer volumes dropped 47% to $5.2 billion daily, and BTC futures open interest fell 24% to $54.65 billion, reflecting reduced market liquidity and limiting upward price movement.

Broader Market Correlation: The crypto market’s decline mirrors risk-off sentiment in equities, exacerbated by events like restrictions on Nvidia’s chip exports to China, which impacted tech stocks and spilled over to crypto