The sharp decline in Bitcoin was triggered by US President Donald Trump's announcement of a 100% tariff on Chinese imports, which caused market turbulence and a significant selloff in cryptocurrencies.

Despite recent volatility driven by trade tensions and macroeconomic shocks, Bitcoin's fundamentals—including institutional participation and halving cycles—remain bullish for the medium to long term.

Institutional activity remains robust, with BlackRock’s iShares Bitcoin Trust holding over 800,000 BTC and nearly $97 billion in assets, reflecting growing confidence despite recent market jitters.

Recent market turbulence was partly due to misinterpreted large Bitcoin redemptions by institutions like BlackRock, but overall ETF inflows since 2024 have surpassed $50 billion, supporting a positive long-term outlook.

Analysts like Tom Lee see the recent dip as a buying opportunity, citing resilience in blockchain and AI sectors, and emphasizing that institutional demand and ETF flows underpin long-term growth.

Bitcoin's long-term trajectory is bolstered by its four-year halving cycle, with the latest halving in April 2024 likely to fuel future rallies.

Bitcoin briefly fell below $120,000 during a volatile session that saw over $19 billion in liquidations, marking one of the most turbulent periods since April 2024.

Technical analysis shows Bitcoin testing support levels around $100,000 to $106,000, with potential for recovery if institutional inflows pick up, and a possible retest of resistance near $115,000 to $120,000.

A macro cycle model indicates Bitcoin's current bull market, which began in November 2022, could peak around October 2025, coinciding with ongoing market volatility.