Bitcoin dropped to $100,723 from $105,723 on Monday, a few hours after Donald Trump’s administration announced closing a trade deal with China. The move seemed unexpected considering the positive development.

Before Monday’s price correction, Bitcoin witnessed a 9% surge following Trump’s announcement that the United States had entered a trade deal with the United Kingdom. The coin also saw some gains on Saturday after Trump posted on Truth Social that the US and Chinese representatives had made positive progress in their talks in Geneva, Switzerland.

Why Has Bitcoin Price Dropped Despite Positive News?

As mentioned, Bitcoin’s latest price drop has surprised many retail investors, who expected the asset to rally further following the positive announcements. So, why is BTC’s price dipping? Analysts say most investors are taking profits ahead of the Consumer Price Index (CPI) report, which will be released today, May 13th.

For starters, CPI measures the change in prices of services and goods in the United States. The data helps the Federal Reserve determine whether to lower or increase interest rates. That said, if the CPI report shows a slight change in prices, investors will assume that US inflation is declining and could be encouraged to buy Bitcoin, thus pushing the coin’s price higher.

Top Institutions Announce Bitcoin Purchases

As retailer investors sit on the fence awaiting the release of CPI data, institutions are accumulating more BTC. On Monday, Michael Saylor’s Strategy bought over 13,000 Bitcoin, expanding its holdings to 568,840 coins. That day, Metaplanet added 1,241 bitcoin to its crypto treasury.

The latest institutional Bitcoin purchases come as data from crypto investment company River shows that corporations have been the biggest BTC buyers in 2025. Besides Strategy and Metaplanet, other firms that have bought Bitcoin this year include video streaming platform Rumble, investment company HK Asia Holdings, and construction company Ming Shing.

Will Trump’s Crypto Adviser’s Firm Establish a Bitcoin Treasury?

Meanwhile, healthcare firm KindlyMD announced a merger with Bitcoin investment firm Nakamoto Holdings, established by Trump’s crypto adviser David Bailey. Many believe that the new entity will create a Bitcoin treasury.

Given the rising Bitcoin adoption rate within institutions, coupled with an improved regulatory environment, it’s likely that the current price correction will be short-lived, with BTC expected to set a new all-time high in the coming weeks.

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