Bitcoin News: Bitcoin Price Dips After U.S.–China Tariff Deal Despite Stock Market Surge — Here’s Why

BTC falls to $102K as risk-on sentiment favors equities over scarce assets like gold and BitcoinBitcoin (BTC) briefly surged to a three-month high of $105,720 on May 12, but then sold off to $102,443, surprising traders who expected the U.S.–China tariff truce to act as a bullish catalyst. While the stock market rallied, Bitcoin lagged — and analysts say the reason lies in broader macroeconomic dynamics and investor rotation.Key Takeaways:BTC dropped 3.1% after peaking at $105.7K, despite the U.S.–China tariff truceInvestors shifted focus to stocks, viewing them as direct beneficiaries of lower tariffsGold and Bitcoin underperformed as demand for scarce, defensive assets fellBTC correlation with S&P 500 remains high at 83%, limiting divergence potentialDespite dip, ETF inflows remain strong, with $2B entering U.S. spot Bitcoin ETFs from May 1–9Stocks Rally, Bitcoin Stalls: Why the Divergence?The 90-day tariff reduction agreement between the U.S. and China — which slashes import tariffs to 10% — sparked a broad stock market rally, especially in sectors sensitive to trade.U.S. Treasury Secretary Scott Bessent said the deal may be extended if “constructive dialogue” continues.While this was seen as bullish for equities, Bitcoin investors hesitated, interpreting the agreement as less impactful for decentralized, non-yielding assets.Bitcoin Faces “Macro Headwinds” Despite Strong FundamentalsBitcoin had already gained 24% over the past 30 days, while the S&P 500 rose 7% and gold remained flat. Given the tight correlation with traditional markets, traders saw limited upside without a new catalyst.Additionally:Gold dropped 3.4% on May 12 as DXY hit a 30-day high, indicating investor confidence in traditional marketsBitcoin surpassed silver and Google in market cap, becoming the 6th-largest tradable asset globallyLarge Holdings Raise Concentration ConcernsRecent headlines about Strategy’s $1.34B Bitcoin purchase (13,390 BTC added between May 5–11) have raised concerns about market concentration. Combined with BlackRock, Strategy now controls over 1.19 million BTC — around 6% of circulating supply.Critics like Peter Schiff argue this strategy could backfire if prices decline and borrowing costs mount. However, Strategy has already raised $42B in equity and debt, suggesting no urgent need to sell.Why $100K Support Is Likely to HoldDespite the pullback, the underlying market structure remains bullish:U.S. Bitcoin ETFs saw $2 billion in inflows in just the first 9 days of MayPrice consolidation appears institutional-driven, not driven by retail euphoriaAnalysts note the decline was a technical correction ahead of the May 13 CPI report