Bitcoin Price Slips as These Catalyst Trigger Sell-the-News Reaction 

• Bitcoin price correction gives a major breakdown below the 200-day EMA support.
• Last Wednesday, the U.S. Fed cut its benchmark rate by 25 basis points to a range of 3.75% to 4%, which acted as a sell-the-news event.
• President Donald Trump said he and President Xi Jinping reached agreements on key areas, including agriculture, energy, and critical minerals, during a meeting in Asia.

The pioneer cryptocurrency Bitcoin plunged over 3% during Thursday’s U.S. market hours to trade at $106,933. This pullback likely came as a sell-the-news effect from the Federal Reserve cutting 25 basis points, the end of quantitative tightening, and advancements in U.S.-China trade talks. The falling Bitcoin price has breached below a key exponential moving average, signaling a risk of deeper correction.

BTC Drops Amid Fed Policy Shift and Trump–Xi Trade Developments

In the last four days, the Bitcoin price showed a notable bearish reversal from $116,381 to $107,242, registering a 7.85% loss. The daily chart clearly shows accelerating bearish momentum through the increasing length of candle size and rising trading volume.

The downswing gained additional momentum as a sell-the-news effect after the Federal Reserve cut its target for the federal funds rate by 25 basis points to 3.75%-4.00%. This marked the central bank’s second rate cut of 2025, prompted by signs of cooling job growth. While the unemployment rate has edged higher, it remains historically low, and inflation continues to hover at elevated levels.

Another factor affecting the broader market is the current development in the U.S.-China trade deal. U.S. President Donald Trump said he and Chinese President Xi Jinping made major progress on trade during a high-profile meeting during his visit to Asia.

In a post to Truth Social, Trump stated that he and Xi agreed on several important areas, such as agricultural trade, critical mineral resources, and combating the trafficking of fentanyl. “There is enormous respect between our two countries,” he wrote, adding that the talks had brought them “very close to resolved” on a number of issues of “high importance.”

According to Trump, China has agreed to start large purchases of US farm goods again, including soybeans and sorghum. “Our farmers will be very happy,” he said, noting that Xi had given China the go-ahead to start buying huge quantities of U.S. agricultural products.

Trump also said that China would continue to supply rare earth elements and critical minerals “openly and freely” to Beijing. The two sides also talked about cooperation to stem the flow of fentanyl into the United States, which Trump called a “strongly stated” commitment from China to “help us end the Fentanyl Crisis.”

Another focus was energy cooperation, with Trump announcing that there could be a “very large scale transaction” between China and the United States for the purchase of oil and gas in Alaska. He said energy officials like Chris Wright and North Dakota Governor Doug Burgum would look more closely at the deal.

Trump wrapped up his post by thanking the leaders of Malaysia, Japan, South Korea, and other Asia-Pacific countries who attended a dinner hosted by South Korea’s President Lee Jae Myung, writing: “Hundreds of Billions of Dollars are being brought into our Country due to them.”

Bitcoin Price Gives Major Breakdown Below 200-day EMA

By press time, the Bitcoin price trades at $106,745 with an intraday loss of 3%. Today’s sell-off has pushed the coin price below the trend-defining 200-day exponential moving average of the daily chart.  

Theoretically, this breakdown could accelerate the selling pressure in price and drive a prolonged correction. However, since January 2023, the BTC has shown three such occurrences of the 200-day EMA breakdown, but the price rebounded above the dynamic slope within the two months.

Thus, if the Bitcoin price enters a consolidation phase below the 200-day EMA slope, the buyers could recoup their bullish momentum in the next 60 days.

On the contrary, if the grace period ends or the Bitcoin price shows a sharp downswing below the EMA, the bullish thesis would get invalidated.

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