Why has Bitcoin dropped sharply?
1. Macroeconomic context & escalating trade tensions
President Trump's announcement of new tax levels has raised concerns about trade wars, causing investor sentiment to shift to a "risk-off" state → investors are withdrawing capital from risky assets like Bitcoin.
New tax measures and unclear monetary policy are causing instability, leading to increased selling pressure.
2. Technicals and liquidation
Bitcoin has hit important technical support levels and then jumped straight into the "death cross" – a negative technical signal that could pull prices down further.
Institutional investors and whales are taking profits, leading to a sharp increase in selling volume after the previous price surge.
3. Changes in Institutional Investment Strategy
Previous investment funds relying on the price difference of Bitcoin and CME futures contracts have started to unwind → pushing the price down to a lower range.
Nevertheless, many large companies like Strategy (formerly MicroStrategy) continue to buy more Bitcoin as a long-term store of value.
4. Market sentiment is tense
The "Fear & Greed Index" is at a very low level, indicating that investors are in a state of panic or lack of confidence in the cryptocurrency market.
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🧭 Analysis: the current trend reflects a correction phase, not a breakdown
Bitcoin is fluctuating around the 114,000 USD mark but still below the psychological threshold of 100,000–110,000 USD.
According to data from multiple sources, BTC has decreased by a total of about 3–6% in the past week, reflecting a controlled correction rather than a collapse.
Despite the correction, the long-term trend is still trusted by many large institutions, which continue to hold BTC with a long-term asset plan.