Bitcoin Bounces Back After Political Shock

Bitcoin Rebounds After Trump-Musk Meltdown Rocks Markets

Bitcoin rebounded on Friday after a sharp sell-off triggered by a high-profile clash between President Trump and Elon Musk, which rattled markets and led to nearly $1 billion in crypto liquidations. Tesla’s 15% stock drop helped drag Bitcoin down to its $100,000 support level before dip-buyers stepped in, lifting BTC back to around $104,700.

Analysts say the sell-off was exacerbated by broader concerns, including Trump’s proposed tax-and-spending bill, rising jobless claims, and thin market liquidity. While short-term sentiment remains fragile—reflected in a bearish long/short ratio of 47/53—some see institutional moves toward real-world asset tokenization as a sign of the sector’s long-term strength.

Metaplanet Unleashes $5.3B Bitcoin Buying Spree

Japan’s Metaplanet, often dubbed “Asia’s MicroStrategy,” plans to raise $5.3 billion through a share issuance to significantly expand its Bitcoin holdings. The Tokyo Stock Exchange-listed company already owns 8,888 BTC worth $934 million and aims to eventually acquire 210,000 BTC—around 1% of Bitcoin’s total supply—by 2027. The move reflects a bold pivot from its original business model to becoming a dedicated Bitcoin treasury, giving shareholders indirect exposure to the cryptocurrency.

Ethereum ETFs Soar: 15-Day Inflow Wave Sets New Record

U.S.-based spot Ethereum ETFs have recorded 15 consecutive trading days of net positive inflows, bringing total cumulative inflows to a record $3.33 billion as of June 7. This marks the strongest streak since late 2024 and coincides with a nearly 40% increase in Ethereum’s price over the past month, driven by rising institutional and retail demand. BlackRock’s ETHA, the largest Ethereum ETF by assets under management, added nearly $600 million during the streak, though Grayscale’s combined Ethereum funds still hold the most total AUM at $4.09 billion. The surge in interest follows Ethereum’s recent Pectra upgrade, which analysts say has drawn more institutional investment but hasn’t yet translated into increased user activity.

By contrast, spot Bitcoin ETFs, which hit a record $45.34 billion in cumulative inflows on May 28, have since seen more than $1 billion in outflows, falling to $44.24 billion. The shift comes amid broader market volatility, including a social media spat between Donald Trump and Elon Musk that triggered a temporary sell-off across digital assets and equities. While Bitcoin remains dominant in overall ETF flows, Ethereum’s sustained inflow streak suggests growing confidence and strategic positioning among investors.

Polymarket Teams Up with X to Decode Markets in Real Time

Polymarket has become the official prediction market partner of Elon Musk’s platform X. The two firms launched a new tool that blends real-time event data from X, Polymarket’s prediction contracts, and insights from xAI’s chatbot, Grok, to explain market-moving news. This marks the first of several planned collaborations aimed at creating unique user experiences. The partnership reflects the growing alignment between major tech firms and blockchain innovations. Polymarket is coming off a record year, with massive trading volumes during the 2024 U.S. election season.

Technical Analysis

Bitcoin’s recovery from the April 7 low has demonstrated strong upside momentum, with the cryptocurrency advancing over 50% from trough to peak and decisively breaching the key psychological threshold of $110,000. This move culminated in the formation of a new all-time high just shy of $112,000.

Following this breakout, upward momentum began to fade, resulting in a 10% retracement. However, BTCUSD found support near the 50-period Exponential Moving Average (EMA), which helped stabilize price action. The pullback attracted dip-buying interest, lifting the pair back toward $105,500.75 at the time of writing.

Technical indicators continue to support a constructive bias. The Relative Strength Index (RSI) remains above the 50 neutral level, while the Momentum Oscillator is still holding above its 100 baseline—both suggesting underlying bullish sentiment. Nonetheless, the flattening slope of the 20- and 50-period EMAs indicates waning buying pressure, raising the likelihood of a near-term consolidation phase.

Going forward, should bullish momentum resume, initial resistance is anticipated near $110,597.86, with further upside targets at $111,867.95 and $120,391.12. On the downside, key support lies around $100,226.49, with additional retracement levels seen near $97,776.26 and $88,658.18. Price behavior around these inflection points will be critical in determining the sustainability of the broader uptrend.

Conclusion

While short-term volatility continues to test investor sentiment, Bitcoin’s technical resilience and a wave of institutional developments—from Metaplanet’s aggressive accumulation to Ethereum ETF inflows—underscore a growing structural foundation for digital assets. Market participants will be closely watching key support and resistance levels as broader macro and political dynamics evolve.