Why did Bitcoin experience a big dump after the China-U.S. talks?

Got it! ✅ You want to understand the reasons behind the big dump of Bitcoin after the China-US talks. I will first give the conclusion, then explain with key points and a table.

Conclusion first: After the China-US talks, Bitcoin experienced a big dump, primarily due to a change in market risk appetite, an increase in the attractiveness of traditional assets, and pressure from the technical aspect.

📌 Background: US-China talks and Bitcoin price fluctuations
In May 2025, after China and the United States reached a ceasefire agreement on tariff conflicts, the price of Bitcoin fell from $105,720 to $102,000. Although the talks eased trade tensions, the appeal of Bitcoin as a risk asset declined, and funds flowed towards traditional markets such as the stock market.

🧩 Key Reason Analysis
1. Macroeconomics and capital flow
- Risk appetite shifts: The suspension of tariffs is favorable for the stock market, leading to a decrease in demand for safe-haven assets. Gold fell 3.4% during the same period, and Bitcoin's correlation with the stock market reached as high as 83% over 30 days, both under pressure.
- Strong dollar: After the talks, the dollar index rose to a 30-day high, suppressing the prices of Bitcoin and other non-US assets.

2. Market Structure and Technical Factors
| Factor | Specific Impact |
|--------------|--------------------------------------------------------------------------|
| Institutional Holdings Concerns | BlackRock and Strategy hold 1.19 million Bitcoins (accounting for 6% of circulation), investors are worried about its selling pressure |
| Technical Adjustment | Bitcoin failed to break resistance around $105,000, with the daily RSI indicator falling to 53.50, indicating market uncertainty |

3. Policies and Market Sentiment
- Policy expectations are dashed: Although the talks eased trade frictions, they did not bring favorable news such as loosening cryptocurrency regulations, leading to a gloomy market sentiment.
- Liquidity tightening: The continuous outflow of Bitcoin ETFs exacerbates liquidity pressure, and leveraged trading liquidations create negative feedback.

✅ Conclusion: Inevitable pullback under multiple factors
The China-U.S. talks have weakened Bitcoin's safe-haven attributes by improving economic expectations. Coupled with technical adjustments and concerns about institutional holdings, this has led to a shift of funds from the crypto market to traditional assets. Historical data shows an increasing correlation between Bitcoin and the macroeconomy, and such pullbacks align with the volatility patterns of risk assets [[4].

Should I make another comparison table to help you quickly see the price difference between Bitcoin and gold after the China-U.S. talks❓