5 Reasons Why Bitcoin Falls Below $111K, Open Interest Reaches A Record High

5 Reasons Why Bitcoin Falls Below $111K, Open Interest Reaches A Record High

Bitcoin falls below $111K to $109K. This sudden change has surprised many investors, especially since open interest has a high record. Bitcoin experiencing falls despite an open interest high record? Let’s break down five reasons why Bitcoin falls below $111K. 

Key Takeaways:

  • Former president Donald Trump plans to bring back tariffs on the European Union and Apple, causing worry to investors.
  • Unclear trading regulations are causing unstable markets. 
  • Open Interest reaches a 30% increase, hitting over $80 billion.
  • Despite Open Interest high records, the Bitcoin price fell below triggering automatic sell-offs, making the fall worse. 
  • The whole crypto market is experiencing value drop due to recent events. 

1. Trump Tariff Threats Causes Worry

5 Reasons Why Bitcoin Falls Below $111K, Open Interest Reaches A Record High

One of the main triggers of the Bitcoin Falls is Trump’s announcement during his conference. He said that he would bring back tariffs on the European Union and Apple. This made people worry about possible trade wars.

When politics get intense, people usually avoid investing in risky assets such as cryptocurrency. Since Trump’s announcement made the market shaky, many people chose an alternative and moved their money to safer places. Resulting in Bitcoin falling below $111K.

2. High Open Interest Means Higher Risk

5 Reasons Why Bitcoin Falls Below $111K, Open Interest Reaches A Record High

As of May 2025, Bitcoin sets a high record of Open Interest hitting over $80 billion, marking a 30% increase since then. This means more traders are putting in their bets using borrowed money in hopes that the Bitcoin price will be higher than before. 

Despite open interest and record of activity in trading Bitcoin, it can also cause danger, which is why Bitcoin falls down below the expected value. This is because most of the trades use borrowed money, so even if there is a small drop, automatic sell-offs will be triggered. 

The quick sell-offs may push the price of Bitcoin down more. So even though it seems like a good sign to the market, trading too much using borrowed money is most likely going to cause the price of Bitcoin to fall. 

3. Trading Rules Are Still Unclear

5 Reasons Why Bitcoin Falls Below $111K, Open Interest Reaches A Record High

Even though the U.S. is starting to make rules for cryptocurrency to make the market stable, such as the GENIUS Act, there are a lot of things that raise concerns and make investors worry. Especially when political controversies are happening.

Situations like this make people worry that politics and the evolving world of cryptocurrency are getting mixed up with each other which may lead to stricter rules. That’s why most investors are more cautious than before. 

4. The Whole Crypto Market Is Experiencing Falls. 

5 Reasons Why Bitcoin Falls Below $111K, Open Interest Reaches A Record High

Not just Bitcoin, but other kinds of cryptocurrency are experiencing falls below their usual value. This shows that Bitcoin is not the only one who is having an issue, but the whole crypto market is having a slowdown. 

5. Safer Investments Is More Interesting Now. 

5 Reasons Why Bitcoin Falls Below $111K, Open Interest Reaches A Record High

Outside of the crypto world, the financial world is changing as well. The U.S. government is now offering better returns, and the value of the dollar is getting stronger and higher. This makes safer investments more appealing than risky ones such as Bitcoin. 

Conclusion : Bitcoin Falls Below

5 Reasons Why Bitcoin Falls Below $111K, Open Interest Reaches A Record High

Bitcoin falls below $111,000 surprised a lot of people, especially since a lot of traders are still very active in Bitcoin trading. However, this happened due to a mix of politics, risky trading, unclear rules, an unstable crypto market, and changes in the financial world. 

Even though a lot still believe that Bitcoin will do well in the future, people should still keep caution in mind. Being mindful of political issues or events and market changes is a must for traders and investors. 

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