Bitcoin’s price dropped to $105,600 on May 30, slipping 2.4% in the past 24 hours as mounting trade tensions between the U.S. and China reignited market anxiety.
The fall pushed BTC below the $106,000 support level, triggering a wave of technical selling and renewed volatility across the digital asset market.
The decline comes amid fresh concerns over stalled negotiations between Washington and Beijing. U.S. Treasury Secretary Scott Bessent told Fox News that trade talks are currently “a bit stalled” and may require direct intervention from President Donald Trump and Chinese President Xi Jinping to advance.
“Given the magnitude of the talks, given the complexity … this is going to require both leaders to weigh in,” Bessent stated. He expressed confidence that once President Trump communicates his stance, the Chinese side will reengage.
Markets React to Political Uncertainty
The breakdown in trade momentum dampened investor sentiment, impacting both traditional and digital markets. Although a temporary truce was reached earlier this month, the lack of follow-up progress has undermined confidence in a long-term resolution.
While global equity markets had initially rallied following the 90-day suspension of tariffs, lingering structural disputes—particularly over China’s state-led economic model—remain unresolved. The latest setback appears to have catalyzed risk-off behavior among Bitcoin traders.
Technical Breakdown Confirmed
Data from CoinMarketCap shows Bitcoin opened above $107,000 on Thursday before retracing steadily throughout the day. The price reached an intraday low near $105,000 before attempting a minor recovery. Trading volume surged 13.54% to $55.79 billion, indicating heightened activity as traders reacted to macro developments.
BTC’s market capitalization currently stands at $2.09 trillion, with a circulating supply of 19.87 million coins. The price weakness below key psychological levels could lead to further pressure if geopolitical friction escalates.
Analysts now await the next round of trade discussions and potential engagement between the two presidents. Until then, macroeconomic risk and uncertainty may continue to weigh on Bitcoin’s near-term trajectory.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/here-is-one-of-the-main-reasons-behind-bitcoins-drop-below-106000/