Bitcoin (BTC) experienced a notable decline on the morning of Friday, May 23, 2025, falling below the $109,000 mark after reaching an all-time high of $111,970 on Thursday.
This downturn is attributed to escalating trade tensions and concerns over market overheating.
Key Factors Behind Bitcoin’s Decline Today
1. Renewed Trade Tensions
President Donald Trump’s announcement of a 50% tariff on all European Union imports and a 25% levy on imported Apple iPhones reignited trade war fears. These measures, set to begin on June 1, have unsettled global markets, prompting investors to shift away from riskier assets like cryptocurrencies .CoinDesk+5CoinDesk+5CoinDesk+5Barron’s
2. Market Overheating Concerns
Despite the recent surge, analysts have raised concerns about Bitcoin’s rapid ascent. Technical indicators suggest potential overheating, with some experts warning of a possible correction due to the swift price increase .
3. Profit-Taking by Investors
The sharp rise in Bitcoin’s price attracted short-term investors looking to capitalize on gains. This profit-taking behavior has contributed to increased selling pressure, further driving down the price.
Current BTC Market Outlook
As of May 23 at 9:45 a.m. ET, Bitcoin is trading at approximately $109,020, marking a 2.5% decrease from its previous high.
While the long-term outlook remains positive for Bitcoin due to institutional interest and regulatory advancements, short-term volatility is expected to persist amid global economic uncertainties.
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