Bitcoin had been climbing steadily. It hit a new all-time high, and most of the market expected the rally to continue. But as often happens, the market shifted gears. On May 30, 2025, the BTC price pulled back sharply, surprising many investors. The question quickly spread: why did Bitcoin drop?
There isn’t a single reason. The move came from a combination of factors happening all at once, each playing a role in pushing the price down.
One of the main triggers was political. President Donald Trump publicly stated that China had violated the terms of its trade agreement with the United States. That raised tensions between the world’s two largest economies. When geopolitical risk increases, many investors reduce their exposure to volatile assets. Despite Bitcoin’s growing reputation as a store of value, it’s still seen by many as high risk.
At the same time, a wave of profit-taking hit the market. Bitcoin had risen fast over the past few months. Early investors saw a chance to lock in gains. That led to strong selling in the spot market and affected leveraged traders as well. As the price dipped, liquidations accelerated, which added more selling pressure.
Another factor was the movement in US Bitcoin ETFs. After ten straight days of net inflows, May 29 brought a major shift. Over 346 million dollars left the funds. That signaled a change in institutional behavior, with large investors taking a step back.
Technically speaking, Bitcoin was already showing signs of exhaustion. It struggled to hold above the 110,000 dollar mark. When that level broke, the market reacted quickly. Long positions began getting liquidated around 103,000 dollars, which only pushed the price further down.
Macro uncertainty also played a role. Investors are still waiting on new inflation data from the US and signals from the Federal Reserve. In this kind of environment, many portfolio managers choose to sit on the sidelines. That weakens demand for risk assets, including crypto.
Despite the drop, most analysts remain optimistic. The mid- to long-term structure remains strong. Exchange balances are still low. Large players are still accumulating. For many, this correction is just a healthy pause in a larger bullish trend.
Now the market is watching closely. The next few days will show whether this was just a technical adjustment or the start of something deeper. For now, the tone is cautious, but far from bearish.
