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What is happening to Bitcoin? Why did it drop from 110,000 to 108,000?
The price of Bitcoin has seen a decline in recent hours from $110,000 to around $108,000, due to several interrelated factors:
1. Profit-taking
After the recent significant rise, many investors took their profits at the $110K level, leading to natural selling pressure in the market.
2. Trump's Escalatory Statements
Former US President Donald Trump announced plans to impose tariffs on many products starting June 1, creating a state of tension in the markets and negatively impacting risk assets, including cryptocurrencies.
3. Technical Analysis: Resistance at 110,000
Bitcoin faces strong resistance at the $110,000 level. If it fails to break through, we may see a correction towards the 107K level or lower.
4. Despite the decline, institutional liquidity continues
Capital flows into Bitcoin exchange-traded funds remain strong, keeping the medium-term outlook positive.
Conclusion:
The current decline seems temporary amid technical and economic factors. Continuous monitoring is essential, especially with upcoming economic decisions that may impact it.
