On Thursday (May 29), Bitcoin bounced back above $107,000, as revelations of secret cryptocurrency transactions involving the Trump family and Pakistan emerged, and Pakistan announced its Bitcoin strategic reserves, indicating a significant shift in the country's stance.
Trump's secret transactions exposed as Pakistan's 'black swan' event sweeps the market.
The high-risk cryptocurrency deal between World Liberty Financial (WLFI), backed by the Trump family, and the newly established Pakistan Cryptocurrency Committee (PCC) raises speculation about the U.S. President's geopolitical motives, especially in light of Trump's efforts to mediate relations between India and Pakistan.
The timing of the agreement's signing came days after the April 22 Pahalgam terror attack, drawing attention from New Delhi and Washington, with analysts questioning whether financial interests influenced Trump's diplomatic stance. After the attack in India, which was closer to Pakistan's nuclear arsenal, Trump began making remarks against India.
WLFI is a decentralized finance (DeFi) and cryptocurrency company established in 2024 and is not an ordinary fintech startup. The company is 60% owned by Trump's two sons, Eric Trump and Donald Trump Jr., as well as their brother-in-law Jared Kushner, who together hold a majority stake entitled to 75% of the proceeds from WLFI token sales.
The company is co-chaired by Zakariyya Witkoff (son of Trump's long-time aide Steve Witkoff), positioning itself as a pioneer in blockchain innovation, stablecoin adoption, and DeFi integration.
Shortly after its establishment in March, the Pakistan Cryptocurrency Committee appointed Binance founder and former Chinese billionaire Zhao Changpeng (CZ) as an advisor. Zhao Changpeng had previously been imprisoned in the U.S. for violating anti-money laundering laws, adding significant credibility to Pakistan's cryptocurrency ambitions but also increasing scrutiny over the transaction's transparency.
The direct involvement of Pakistan Army Chief General Asim Munir complicates the situation further. Munir personally welcomed a WLFI delegation led by Zakariyya Witkoff during the signing ceremony, raising speculation about its potential impact on national security. Munir's presence indicates a deeper strategic alliance between the Pakistani military and entities associated with Trump.
On Wednesday, Bilal Bin Saqib, chairman of the Pakistan Cryptocurrency Committee, announced that the country is working on establishing a strategic Bitcoin reserve.
Saqib noted at the Bitcoin 2025 conference held in Las Vegas, Nevada, that the Pakistan government is following the U.S. in establishing a Bitcoin strategic reserve and is implementing regulatory policies that support cryptocurrency.
He told the audience: 'Today is a historic day. Today, I announce that the Pakistan government is establishing its own government-led Bitcoin strategic reserve, and we want to thank the United States once again, as we were inspired by them.'
The statement indicates a significant change in the Pakistan government's stance towards cryptocurrency, as it believes that cryptocurrency will never be legal in the country.
Pakistan's shift reflects changes in U.S. regulation since Trump's administration, as nation-states adopt broader trends of supporting cryptocurrency policies.
In February, the Pakistan government first explored the idea of establishing a 'National Cryptocurrency Committee' to oversee the development of a comprehensive regulatory framework for cryptocurrencies and attract foreign investment. The committee proposed several initiatives, including mining Bitcoin or data centers using runoff energy and accumulating Bitcoin for the treasury.
In May, the committee announced that 20 trillion watts of excess energy would be allocated for Bitcoin mining and high-performance computing data centers.
Stablecoin heavyweight: BlackRock plans to hold 10% of Circle's IPO.
It is reported that BlackRock plans to hold a significant stake in Circle's upcoming IPO.
Bloomberg reported on Wednesday, citing anonymous sources, that BlackRock plans to subscribe to about 10% of the offering. Circle, the issuer of the world's second-largest dollar stablecoin USDC, plans to raise $624 million in its IPO.
It is reported that the 'stock market goddess' Cathie Wood's Ark Investment Management is also interested in purchasing $150 million worth of shares from this offering.
Circle launched an offering of 24 million Class A common shares on Tuesday. This issuance includes both company shares and shares from existing shareholders, including co-founder and CEO Jeremy Allaire. Reports indicate that Circle's IPO has currently received subscriptions several times the upper limit of the offering volume.
The company submitted its IPO application on April 1 but postponed its plans due to economic uncertainty. Reports suggest that cryptocurrency companies Ripple and Coinbase are exploring the possibility of acquiring Circle. The company later denied the rumor, stating that Circle 'will not be sold.'
GameStop officially confirms its first purchase of Bitcoin, totaling 4,710 coins.
According to a statement released by U.S. video game and consumer electronics retailer GameStop on Wednesday, the company has confirmed its first Bitcoin investment, acquiring 4,710 Bitcoins.
The company did not specify how much it paid for Bitcoin, and the announcement did not mention the exact timing of the acquisition, while its Form 8-K submitted to the SEC provided little detail. As of the writing of this article, the acquisition amount is approximately $513 million.
The announced acquisition is the first public acknowledgment of GameStop's purchase of Bitcoin since it disclosed its plans to enter the Bitcoin investment market in March.
At the time, the company stated that it would finance the purchase of Bitcoin through debt financing and launched a $1.3 billion convertible note offering.
Bitcoin Technical Analysis
FXStreet analyst Manish Chhetri stated that the Santiment’s Network Profit and Loss (NPL) indicator suggests that Bitcoin holders took some profits after a slight rebound in the cryptocurrency on Monday, following Trump's delay in imposing tariffs on the EU.
As shown in the chart below, bad loans surged significantly on Tuesday, reaching the highest profit-taking activity since February 5. This surge indicates that holders are selling their bonds at substantial profits on average, increasing selling pressure.
K33 Research's report highlights that the leverage and open interest (OI) of Bitcoin perpetual futures suggest potential volatility ahead, although there is currently no clear directional bias.
The report indicates that since Bitcoin broke its all-time high (ATH) last week, the open interest (OI) of Bitcoin perpetual contracts has surged significantly, as shown in the chart below. The rise in OI suggests that traders are increasing their positions, and market leverage is rising again, potentially anticipating significant volatility in the future.
K33 analysts stated: 'While long liquidations are normal, the current financing rate structure presents a murky picture, indicating an increased likelihood of squeezes in either direction.'
The Bitcoin momentum indicator is signaling early warning signs of potential weakness. The relative strength index (RSI) on the daily chart is at 64, continuing to decline after breaking below the overbought level of 70, indicating that bullish momentum is weakening. Additionally, the moving average convergence divergence (MACD) indicator also showed a bearish crossover on Sunday, issuing a sell signal, suggesting a downward trend.
If Bitcoin encounters a pullback, it may continue the downward trend and retest its daily support level of $106,406. If it successfully closes below this level, it may extend the decline and revisit the significant psychological level of $100,000.
