This Week in Crypto: Trump, Musk, and the Bitcoin Plunge Nobody Predicted

The leading cryptocurrency ended the week with an increase of about 1%, trading at around $105,900.On Friday, June 6, the altercation between U.S. President Donald Trump and billionaire Elon Musk put pressure on Bitcoin and the market as a whole. The price of the digital gold dropped 3%, approaching $100,000.After a swift recovery, the cryptocurrency continued its upward movement to weekly highs of around $106,800.According to our algorithm, BTC’s price is forecasted to rise by 10.62% and reach $117,664 by July 8, 2025. CoinCodex suggests now may be a good time to buy, with a potential 69.47% ROI if holding until late August 2025.Altcoins reacted similarly to the public quarrel between the country’s richest man and the head of state. Only Musk’s “favorite” coin, Dogecoin, continued to fall, losing 3.9% over the week.XRP and TRON showed positive performance during the period, gaining 5.9% and 6.7%, respectively.The Cryptocurrency Fear and Greed Index also returned to the green zone after dropping to a neutral value of 62, with its market capitalization sitting at $3.42 trillion, while its dominance sits at 61.5%BTC is leaning towards “Greed” on the Fear & Greed index. Source: alternative.me.Stablecoin issuer Circle was valued at $6.9 billion at the end of its IPO. Circle raised $1.1 billion in an initial public offering that was oversubscribed by 25 times.In the debut trading session on June 5 on the New York Stock Exchange, the share price under the ticker CRCL rose from $31 to $82 — a 168% increase.The next day, Circle’s share price rose by about 30% more.Circle’s stock price over the past 5 days. Source: Yahoo Finance.On Sunday evening, the premarket valued Circle shares at $115.20, up approximately 7% from Friday’s close. The company’s capitalization reached $21.6 billion.Meanwhile, Artemis co-founder and CEO John Ma estimated that the current value of Circle’s main competitor, Tether, would reach $515 billion if it went public.Paolo Ardoino, head of the USDT issuer, called the valuation “somewhat understated.” However, he said that the company has no need for public status.Several experts questioned the accuracy of Ma’s calculation methodology. According to some, the real capitalization of Tether is $75–80 billion.The Ethereum Foundation, a non-profit organization, has downsized part of its research and development team to focus on the protocol’s key challenges.If we play our cards right, we’ll remember today as one of the most consequential turning points in Ethereum’s history.

The last few months have been, to put it mildly, tumultuous. While it’s clear that many things need to change for Ethereum to win, it’s easy to overcorrect and…The revamped team will focus on three main areas:The reshuffle came amid ongoing criticism of the organization’s strategic direction and management decisions.Many members of the Ethereum community are concerned that if current technical problems persist, the platform may lose its position as an industry leader. In response to these challenges, the organization has previously changed its leadership.“The changes announced today are a departure from our previous operating format. But we are confident they will help improve efficiency and flexibility,” the foundation said in a statement.The former head of Binance, Changpeng Zhao (CZ), warned of the risks associated with the widespread creation of corporate reserves based on Bitcoin.These companies are taking risks.
Every company takes risks.
Risks are not binary like 0 or 1.
Risks are a range from 0 – 100.
With the right balance, you can achieve the best risk/ROI ratio that works for you.
Risks can/must be managed.
Not taking risks is a risk in itself. https://t.co/LXsQceWNRZHe pointed out the possibility of extreme scenarios such as a Bitcoin collapse, which investors should consider in asset management.Economist and author of “The Bitcoin Standard,” Saifedean Ammous, also advised companies accumulating Bitcoin to prepare for a possible collapse in the exchange rate. He noted that the cryptocurrency is approaching the top of the bull cycle, which may be followed by a drop of up to 80%. Companies that formed Bitcoin reserves at recent highs should assess how resilient their business models are to such a development, Ammous emphasized.According to Standard Chartered analysts, the growing popularity of copying MicroStrategy’s approach of accumulating Bitcoin is not suitable for every company. The average purchase price for companies imitating MicroStrategy is significantly higher than that of Michael Saylor’s company. At this stage, leveraging to purchase Bitcoin appears efficient from a NAV perspective, but the situation could change dramatically if the digital asset experiences a significant drawdown.Ethereum made headlines this week as spot ETFs tracking the asset saw their strongest inflows in over six weeks. According to data from leading analytics firms, more than $321 million entered Ethereum ETF products last week alone. Total Ethereum Spot ETF Net Inflow. Source: CoinGlassThis influx of capital pushed exchange balances for ETH to their lowest levels in seven years, suggesting that investors are increasingly moving their holdings into long-term storage or investment vehicles.The surge in inflows has been attributed to growing institutional demand, with many analysts noting that Ethereum’s recent network upgrades and the anticipated impact of future protocol improvements are making it more attractive to large investors. The steady rise in ETF participation also helped keep ETH’s price above the psychologically important $2,600 level, despite broader market volatility.Market observers believe that if this trend continues, Ethereum could see renewed momentum both in price and in overall network activity. The record ETF inflows are seen as a sign of confidence in Ethereum’s long-term prospects, particularly as the asset continues to position itself as the leading smart contract platform in the crypto ecosystem.The decentralized finance (DeFi) sector saw a standout performance from Hyperliquid and its HYPE token over the past week.HyperLiquid futures Trading Volume. Source: CoinGlassHyperliquid, a custom Layer 1 blockchain designed for high-speed and low-cost trading, processed an impressive $248 billion in trading volume during May. This accounted for about 80% of all on-chain perpetual volume, highlighting the platform’s rapid ascent in the DeFi landscape.HYPE, the native token of Hyperliquid, nearly doubled in value month-to-date, attracting the attention of both retail and institutional investors. The platform’s total value locked (TVL) reached $1.54 billion, making it one of the fastest-growing DeFi projects of the week. Analysts point to the platform’s innovative features, such as its custom-built matching engine and user-friendly interface, as key drivers of its recent success.The explosive growth of Hyperliquid and HYPE underscores the ongoing evolution of the DeFi sector, where new protocols and tokens can quickly capture significant market share. As competition intensifies, platforms like Hyperliquid are likely to continue innovating to attract liquidity and users, further shaping the future of decentralized finance.Get Started on eToroeToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.