Bitcoin saw an 11% drop since Monday, hitting a six-month low of $94,590 on Friday. Concerns about inflation rose after US President Trump announced plans to cut tariffs to ease high food costs. Traders are wary as tech sector weakness spills into crypto markets, dampening demand for bullish leverage and Bitcoin ETFs.

The pullback led to $900 million in BTC leveraged long positions being wiped out, making up less than 2% of total open interest. Despite this, the broader market was relatively unaffected. Whales increased long positions at Binance, while OKX whales cut exposure after Bitcoin fell below $100,000, indicating mixed sentiment among professional traders.

AI sector concerns contributed to the recent market correction, as legendary investor Michael Burry questioned the impact of lengthening depreciation schedules for computing equipment on earnings momentum. Bitcoin spot ETFs in the US experienced $1.15 billion in net outflows over two days, causing sentiment to dip slightly. The market remains uncertain as traders seek clarity on the economic outlook.

Read more at Cointelegraph: Bitcoin Price Weakness Likely to Continue Until Risk Off Mood Peaks