Core Insights - Bitcoin price experienced a decline of over 3%, dropping to $112,000 after briefly reaching $116,000, which was unexpected given positive geopolitical news and strong performance in traditional markets [1][2][3] - The Nasdaq 100 Index rose by 0.6% and the S&P 500 Index surged 1.23% to an all-time high, while Bitcoin and the broader cryptocurrency market showed weakness [3] Market Sentiment - The sell-off in Bitcoin was counterintuitive to the overall market sentiment, as positive developments in US-China trade negotiations were occurring simultaneously [2] - On-chain analysts indicated that weak buying sentiment was a likely cause for the unexpected drop in Bitcoin's price [4] Institutional Demand - US Spot Bitcoin ETFs saw net inflows of approximately $200 million, but this was significantly lower than recent accumulation trends, indicating subdued institutional interest [4][6] - Glassnode reported that current inflows are less than 1,000 BTC per day, which is notably lower than the over 2,500 BTC per day seen at the start of previous major rallies [6] - The analysis concluded that while demand is recovering, it lacks the intensity needed to push Bitcoin past the $116,000 resistance level, making the market vulnerable to pullbacks [6]