Bitcoin price sells off after Trump’s US-China tariff deal, as investors shift towards stocks following a potential end to the trade war between the two nations. The surge that saw Bitcoin reach $105,720 on May 12 was short-lived as it dropped to $102,000 after the US-China tariff truce was announced. This unexpected reaction left traders puzzled. The 90-day truce included reducing import tariffs, with the possibility of extending it based on constructive dialogue. The agreement covered topics like currency manipulation, steel price dumping, and restrictions on semiconductor exports. Bitcoin’s recent lack of momentum can be attributed to its 24% gains in the last 30 days, compared to a 7% rise in S&P 500 futures and stagnant gold prices. The high 83% correlation between Bitcoin and the stock market indicates little reason for further divergence. Bitcoin has now surpassed the market cap of both silver and Google, becoming the world’s sixth-largest tradable asset. Strategy’s acquisition of 13,390 BTC raised concerns, with the company holding 1.19 million BTC, about 6% of the circulating supply. Critics fear Strategy’s increasing average purchase price could lead to losses, but the company’s capital increase limit expansion suggests otherwise. The weakening of Bitcoin near $105,000 is likely due to broader macroeconomic conditions favoring the stock market over scarce assets like Bitcoin. The strengthening US Dollar Index on May 12 negatively affected gold prices, signaling investor confidence despite some economic indicators like a decline in GDP and a rise in pending home sales. Despite the lack of conviction among Bitcoin investors, the steady demand for Bitcoin post a 24% monthly gain indicates institutional adoption rather than retail-driven FOMO, which is positive for the price. With $2 billion in inflows into US spot Bitcoin ETFs between May 1 and May 9, the likelihood of Bitcoin dropping below $100,000 remains low.