Bitcoin Price Falls to $105K as Traders React to Tariff Confusion and Volatility

Bitcoin price retreated to $105,000 after a federal court paused the overturning of Trump-era tariffs, sparking another round of market anxiety and speculative trading.

While this legal reversal was within expectations, the broader issue remains: most trade agreements are still incomplete—especially with heavyweights like China and the European Union—leaving investors navigating a fog of uncertainty.

A combination of factors slightly dented overall market sentiment:

• Fear & Greed Index dropped 7 points to 61 (still Greed);
• BTC dominance held steady at 63%;
• Altseason Index fell by 5 points to 20, indicating a strong Bitcoin season.

Bitcoin’s sharp price drop triggered $694 million in daily liquidations, with $629 million wiped from long positions. BTC liquidations totaled $207 million, nearly double Ethereum’s $108 million, reflecting a renewed concentration of market activity around digital gold.

Trend Reversal Signals Deeper Correction Risk

After briefly climbing to $107,000 to test the broken diagonal trendline—now acting as resistance—Bitcoin fell to $104,500, signaling the end of its recent uptrend. The move increases the odds of a correction down to $100,000. Still, not all hope is lost: a rapid move back above $110,000 would be required to restore bullish control.

Bitcoin is sitting at a critical level, trader Gil Morales observes, with price action clinging to the 20-period double exponential moving average. A breakdown could open the door to $99,000, where another DEMA level offers potential support.

Bitcoin Breaks from Bond Correlation

U.S. spot Bitcoin ETFs recorded a net capital outflow of $346.8 million, breaking a 12-day inflow streak. All major funds saw redemptions except for BlackRock’s iShares Bitcoin Trust (IBIT), which posted a positive inflow of $125.1 million, marking its 34th consecutive day of capital gains.

André Dragoș of Bitwise pointed out that Bitcoin and U.S. 10-year Treasury futures are now moving apart, with their 60-day correlation plunging to its lowest level yet. Investors, it seems, are treating them as fundamentally different bets in the current macro environment.

Rising bond yields in the 4–5% range suggest falling demand for traditional fixed-income assets. In response, institutional investors are increasingly positioning Bitcoin as a long-term haven for preserving capital in today’s volatile macro landscape.

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