Bitcoin experienced a sell-off to $102,000 after reaching a three-month high of $105,720, following a US-China tariff deal aimed at reducing tensions in their trade relationship. Investors shifted focus to stocks, which benefited from the lowered tariffs, leading to a decreased demand for Bitcoin as a safe-haven asset. The macroeconomic climate appears to favor traditional markets over scarce assets like Bitcoin and gold, which dropped 3.4% on the same day. The reduction in tariffs suggests higher revenues for businesses, diminishing the appeal of Bitcoin, which has rallied 24% over the past month, mirroring movements in the S&P 500. Concerns arose regarding major holders of Bitcoin, including Strategy, which possesses 1.19 million BTC. Critics warn that potential losses could push such entities to liquidate holdings. Nevertheless, strong institutional adoption signals a resilient demand for Bitcoin, reducing the likelihood of a drop below $100,000. The article highlights that external macroeconomic events weigh more heavily on Bitcoin than specific developments within the cryptocurrency market.

Source 🔗