Bitcoin's price weakness in 2025 has been commonly attributed to the US-led tariff war. However, several factors contributed to this decline before tariffs were implemented. Bitcoin struggled to maintain prices above $100,000 prior to the trade war and found support around $80,000 due to substantial purchases by Strategy. While institutional demand for Bitcoin, evidenced by $2.75 billion inflows into spot Bitcoin ETFs, persisted even as tariffs were imposed, traders' expectations surrounding a proposed national Bitcoin stockpile influenced their outlook negatively. Additionally, a controlled inflation rate in the US is likely to favor traditional investments over Bitcoin, especially as job market data weakened and investors exhibited a greater appetite for safety in government bonds. Consequently, despite the trade war's impact, Bitcoin's challenges stemmed from previously existing economic factors, including inflation trends and shifting risk preferences among investors.

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