Why is Bitcoin experiencing a sell-off?

Reasons👇

1) Excessive Leverage

After BTC broke its all-time high, the open interest surged to its highest level since December 2024.

At the same time, the financing rates entered an overheated zone, which means that the bulls became overly confident.

Usually, whenever this happens, whales sell off prices to liquidate those greedy bulls.

2) Trump's Tariffs

Today, Donald Trump threatened to impose a 25% tariff on Apple starting June 1st and a 50% tariff on the EU.

This led to a crash in stock futures, and Bitcoin faced a similar decline.

3) Federal Reserve Statement

A Federal Reserve member stated today that if there is a crisis in U.S. fiscal stability, interest rates may rise.

We all know that the Federal Reserve will not raise interest rates, but even this statement is enough to panic the market.