☄️Bitcoin price sells off after Trump’s US-China tariff deal — Here is why

Bitcoin price takes an unexpected turn to the downside even as stocks soar following the US-China trade deal announcement.

📊 Key takeaways:

🔵Bitcoin lags as investors shift toward stocks after the US and China strike a deal that could end the current trade war.

🟣Macroeconomic conditions are swinging away from gold investing and back to stocks. 

🔵Bitcoin reached its highest price in over three months at $105,720 on May 12, but was unable to maintain its bullish momentum.

🕯 The 90-day truce reduced import tariffs, and US Treasury Secretary Scott Bessent noted that the agreement could be extended, provided there is a genuine effort and constructive dialogue. According to Yahoo Finance, the topics under discussion include “currency manipulation,” “steel price dumping,” and restrictions on semiconductor exports.

💸 The lack of conviction among Bitcoin investors when prices traded near $105,000 is at least partly due to reduced demand for scarce assets, as investors view the stock market as a more immediate and direct beneficiary of the US-China trade deal. Lower import duties suggest higher revenues and potentially improved profit margins for companies.

📈Given the impressive $2 billion in inflows into US spot Bitcoin exchange-traded funds (ETFs) between May 1 and May 9, the likelihood of a price drop below $100,000 remains low. The steady demand for Bitcoin following a 24% monthly gain points to institutional adoption rather than retail-driven FOMO, which is a very positive sign for the price.