The cryptocurrency market experienced notable fluctuations this week, with Bitcoin hovering around the $104,000 mark as several significant events unfolded in both the political and financial spheres.
Bitcoin’s Price Journey
Bitcoin started the week in a relatively stable position near $104,000, following multiple rejections at the $110,000 level the previous week. After approximately 72 hours of consolidation, the cryptocurrency began gaining momentum but faced resistance around $106,500 on several occasions .
Even after the European Central Bank announced its eighth consecutive interest rate cut on Thursday, lowering rates to a two-year low of 2%, Bitcoin only managed to briefly climb to $106,000 before encountering selling pressure . This led to a significant correction, with BTC dropping to a multi-week low of $100,400 .
As of Friday, June 6, 2025, Bitcoin has recovered some ground and currently trades around $104,000, representing a modest 1.7% decline on a weekly scale . According to various price predictions, Bitcoin could reach between $118,641 and $137,017 by early July 2025 .
The Trump-Musk Rift
A significant factor influencing market sentiment this week was the unexpected public dispute between the U.S. President and one of his closest allies, Elon Musk. The drama escalated quickly as both individuals used their respective social media platforms to exchange accusations.
Some of the most notable exchanges included Musk alleging the President was mentioned in the Epstein files, while the President threatened to halt Musk’s government contracts. Recent reports even suggest the President plans to sell his Tesla electric vehicle, further intensifying the conflict.
This high-profile disagreement has been partially blamed for Bitcoin’s price correction, with several altcoins experiencing even more substantial losses. Dogecoin (DOGE) fell by 12.5%, while Chainlink (LINK) and Avalanche (AVAX) dropped by 8.5% and 10% respectively.
Market Overview
The overall cryptocurrency market capitalization currently stands at $3.365 trillion, with a 24-hour trading volume of $145 billion. Bitcoin maintains its dominance at 61.4% of the total market. Other major cryptocurrencies have also experienced declines, with Ethereum (ETH) down 4.7% and Ripple (XRP) falling 1.2%.
Key Developments This Week
Exchange Outflows Continue: Over 22,500 BTC were moved from trading platforms to self-custodial devices in a single day, potentially reducing selling pressure on the market.
On-Chain Buy Signal: Despite the price dip, the Bitcoin Hash Ribbons Indicator flashed a “buy the dip” signal, coinciding with Bitcoin’s hashrate reaching new all-time highs.
ECB Rate Cut: The European Central Bank reduced interest rates to 2%, the lowest in over two years, while the U.S. Federal Reserve has maintained unchanged rates throughout 2025.
Robinhood Acquires Bitstamp: Robinhood strengthened its position in the European crypto market by acquiring Bitstamp, the world’s oldest functioning digital asset exchange, for $200 million.
Profit-Taking Surge: Reports suggest that intense profit-taking following Bitcoin’s recent ascent to $111,000 may be responsible for the subsequent price correction.
Strategy’s Bitcoin Acquisition Plans: The world’s largest corporate holder of Bitcoin announced IPO plans for 2.5 million shares at $100 per stock, later increasing its target from $250 million to $1 billion to fund additional Bitcoin purchases.
