#TrumpTariffs

The current drop of #Bitcoin is primarily due to geopolitical tensions, such as comments from the U.S. president about China, which trigger a massive sell-off of risk assets, and the strengthening of the U.S. dollar, which competes with gold and Bitcoin. Other important factors include the recovery of inflation, which stifles hopes for a more flexible monetary policy, and the closing of positions by investors after being unable to maintain historical highs.
Key factors of the drop
Geopolitical tensions: Tariff threats between the U.S. and China create volatility in the markets, leading investors to sell risk assets like Bitcoin.
Strengthening of the dollar: A stronger dollar attracts capital, and although it is a traditional currency, this can generate a negative reaction in assets like Bitcoin.
Inflation data: The rise in inflation in the U.S. dispels fears of a more flexible monetary policy, which can negatively affect cryptocurrencies and other risk assets.
Profit-taking and panic: Some investors close their positions after reaching historical highs to avoid losses, triggering a significant price drop.
Uncertainty and volatility: The lack of solid regulation and the speculative nature of the cryptocurrency market increase volatility. This can cause the price of Bitcoin to rise or fall dramatically in response to news or market events.