๐จ Bitcoin Price Dips After U.S.โChina Tariff Deal โ Here's Why ๐
Bitcoin (BTC) briefly surged to $105,720 on May 12, hitting a three-month high, but then quickly dropped to $102,443, surprising traders who expected the U.S.โChina tariff truce to boost BTC. ๐ค๐
Why the dip?
While stocks rallied after the 90-day tariff reduction between the U.S. and China, Bitcoin lagged behind. Here's why:
๐ Key Points:
BTC dropped 3.1% after hitting $105.7K, despite the tariff deal.
Stock market rally seen as a direct beneficiary of the tariff cut โ stocks over Bitcoin.
Gold & Bitcoin underperformed as demand for scarce assets fell.
BTCโs 83% correlation with the S&P 500 limits its upside potential in a risk-on market.
Despite the dip, $2B in inflows into U.S. spot Bitcoin ETFs from May 1-9 remain strong.
๐ Macro Headwinds:
Bitcoin had already surged 24% in the past 30 days, while the S&P 500 rose 7%. But investors were focused on stocks as the deal is seen as bullish for equities, not decentralized, non-yielding assets like BTC. ๐
๐ Large Holdings and Market Concentration:
Big players like Strategy (13,390 BTC) and BlackRock now control over 1.19 million BTC โ about 6% of the supply! ๐ฆ
๐ช Why $100K Support Could Hold:
Despite the pullback, institutional-driven price consolidation is happening. $2B in ETF inflows and the market structure remain bullish, making a $100K support level likely to hold.
