Both Bitcoin and gold took a hit today, May 12, 2025, and it’s no accident they tumbled together. Here’s what’s going on:

First, easing U.S.–China trade tensions sent investors back into stocks and lifted the dollar, sapping demand for safe havens. Gold slid about 1.4% to $3,277 an ounce as traders cheered positive trade talks.

At the same time, Bitcoin dropped roughly 3–4% down to around $102,000. With traders rotating profits from risk-off assets into equities, BTC felt the squeeze too. Macro conditions are swinging away from both gold and crypto, favoring high-beta stocks instead.

Second, profit-taking after recent rallies is another big factor. When an asset surges, smart money often locks in gains quickly, and today was the perfect opportunity.

Overall, this feels more like a market “breather” driven by broader risk-on sentiment rather than the start of a long-term downtrend. If trade optimism sticks and the dollar holds its strength, both gold and Bitcoin might see further short-term pullbacks—but they might also bounce back once traders look for their next hedges. $BTC