Why Is Bitcoin ($BTC) Dropping?

BTCUSDT

Perp

108,781.4

-2.62%

Here are the main reasons $BTC

1) Too Much Leverage

After Bitcoin broke its all-time high, open interest surged to its highest level since December 2024. $BTC

At the same time, funding rates became overheated — a sign that too many traders were overly bullish.

When that happens, big players (whales) often dump the price to wipe out those overconfident long positions.$BTC

2) Trump’s Tariff Threats

Donald Trump recently threatened to impose a 25% tariff on Apple and a 50% tariff on European goods starting June 1st.

This spooked the markets, causing stock futures to fall — and Bitcoin dropped alongside them.💸

3) Fed’s Interest Rate Warning

A Fed official warned that interest rates might go up if the U.S. faces a fiscal crisis.

This kind of news usually makes investors nervous, leading to sell-offs in riskier assets #TrumpTariffs #MarketPullback #BTCBreaksATH110K #BTC走势分析 #BTCBreaksATH110K