Bitcoin price sells off after Trump’s US-China tariff deal — Here is why

Date: 2025-05-12

Key takeaways:Bitcoin lags as investors shift toward stocks after the US and China strike a deal that could end the current trade war.Macroeconomic conditions are swinging away from gold investing and back to stocks. Bitcoin (BTC) reached its highest price in over three months at $105,720 on May 12, but was unable to maintain its bullish momentum. Interestingly, the drop to $102,000 came after a temporary easing in the US-China tariff conflict. This has left traders puzzled as to why Bitcoin reacted negatively to what seemed like positive developments.The 90-day truce reduced import tariffs, and US Treasury Secretary Scott Bessent noted that the agreement could be extended, provided there is a genuine effort and constructive dialogue. Accor...

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