Crypto Weekly Wrap: Political Turmoil, Price Drops & Strategic Moves
This week, the crypto market saw unexpected turbulence sparked by a public feud between the US President and Elon Musk. Their heated online exchange weighed heavily on investor sentiment and market movement.
Bitcoin began the week around $104,000 after facing resistance near $110,000. It briefly climbed to $106,500 but couldn’t hold the gains. Following the European Central Bank's interest rate cut to 2%—its lowest in two years—Bitcoin dropped to a multi-week low of $100,400.
The Musk-POTUS clash was widely blamed for the downturn. Musk accused Trump of appearing in the Epstein files, while Trump allegedly considered halting Musk’s government contracts. Reports of a reconciliation call were denied, and rumors emerged that Trump might sell his Tesla.
Despite the drama, Bitcoin bounced back slightly to $104,000 by week’s end, down just 1.7%. Other cryptos suffered steeper losses: DOGE (-12.5%), SIU and LINK (-8.5%), AVAX (-10%).
Key Highlights
22,500 BTC Withdrawn in One Day: A major outflow from exchanges suggests rising self-custody and lower selling pressure.
Hashrate Hits New Highs: On-chain data signaled a “buy the dip” opportunity as network strength grew.
ECB Cuts Rates: Europe’s interest rate drop had only a brief positive impact on Bitcoin.
Robinhood Buys Bitstamp: A $200M deal expanded Robinhood’s footprint in the European crypto market.
Profit-Taking Behind BTC Drop: After reaching $111K, realized profits surged, likely triggering the latest price fall.
Strategy Plans $1B IPO: The top corporate Bitcoin holder aims to raise funds to buy even more BTC.
