- Bitcoin slips to $102,000 despite US-China tariff truce, puzzling traders amid broader market optimism.
- Strategy and BlackRock now control 6% of Bitcoin’s supply, sparking concerns about market influence and potential sell-offs.
- US Dollar Index hits a 30-day high, diverting investor interest from Bitcoin as stocks rally and gold drops 3.4%.
Bitcoin hit $105,720 on May 12, its highest in over three months, but the rally didn’t last. Despite positive news about a 90-day truce in the US-China tariff conflict, BTC slid back to $102,000, leaving traders scratching their heads. The truce aimed to ease tensions over currency manipulation, steel dumping, and semiconductor exports, but Bitcoin’s lack of follow-through suggests broader market dynamics are in play.
Strategy’s BTC Hoard Raises Questions
Meanwhile, Strategy grabbed another 13,390 BTC between May 5 and May 11, adding to its massive holdings. Along with BlackRock, the two giants now control around 1.19 million BTC – roughly 6% of the circulating supply. Critics like Peter Schiff argue that if Strategy keeps raising its average buy-in price, it could face pressure to sell assets to cover debts. Still, the firm recently boosted its capital limits by $21 billion each in stocks and debt, suggesting it’s not cash-strapped – at least not yet.
Stocks Surge, Bitcoin Stalls
While Bitcoin’s gains over the past 30 days sit at 24%, S&P 500 futures are up 7% and gold’s basically flat. The US Dollar Index (DXY) just hit a 30-day high, signaling investor confidence in stocks over safe-haven assets like gold – and, by extension, Bitcoin. With $2 billion in inflows into US spot Bitcoin ETFs in early May, institutional demand appears steady. But with CPI data looming, the big question is whether Bitcoin can maintain momentum or if we’re looking at a potential pullback below $100,000.
