$BTC
Why Is Bitcoin ($BTC) Dropping? 🔻
1️⃣ Too Much Leverage
After Bitcoin broke its all-time high, open interest surged to its highest level since December 2024. $BTC
At the same time, funding rates became overheated — a sign that too many traders were overly bullish.
When that happens, big players (whales) often dump the price to wipe out those overconfident long positions. $BTC 📉
2️⃣ Trump’s Tariff Threats
Donald Trump recently threatened to impose a 25% tariff on Apple 🍏 and a 50% tariff on European goods starting June 1st.
This spooked the markets, causing stock futures to fall — and Bitcoin dropped alongside them. 💸
3️⃣ Fed’s Interest Rate Warning
A Fed official warned that interest rates might go up 📈 if the U.S. faces a fiscal crisis ⚠️
This kind of news usually makes investors nervous, leading to sell-offs in riskier assets.