Bitcoin experienced significant volatility following a US-China trade deal, with its price peaking at $105,720 on May 12 before dropping to $102,000. This decline surprised traders as it coincided with a 90-day truce that reduced import tariffs and potentially ended the trade war. Investors shifted their focus towards stocks, which are seen as immediate beneficiaries of the agreement, while demand for Bitcoin and gold waned. Gold fell by 3.4%, reflecting a decrease in interest in safe-haven assets. Additionally, Bitcoin's substantial gains over the past month (24%) contrasted with the S&P 500's 7% increase, causing a perception that Bitcoin may lag behind traditional markets. The article notes that Bitcoin has surpassed the market capitalization of silver and Google, making it the sixth-largest tradable asset. Concerns were also raised about a prominent investment strategy that could lead to significant price fluctuations if losses occur. Despite these issues, the overall sentiment in the market indicates ongoing institutional adoption of Bitcoin, which could support its price even amidst recent declines.

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