The main dishes to remember:
Bitcoin (BTC) climbed around $ 105,000 on June 6 after diving at its lowest level in four weeks the day before.
Merchants wondered if the sharp drop had been coordinated, in particular following reports that US President Trump and Chinese President Xi Jinping had resumed discussions on import rates.
The reasons for the sudden fall of Bitcoin on June 5 could never be fully clarified. However, several contributory factors have emerged, including fears of a potential economic recession, a continuous uncertainty surrounding the strategic reserves of American Bitcoin and the speculation that guards could engage in rehyperothecation practices.
If these concerns are valid, a quick return to $ 110,000 seems unlikely.
Whale Hyperliquid and Impact of Elon Musk on Bitcoin
According to some analysts, including X User Bitbitcoinbro, the drop to $ 100,430 on June 5 was mainly triggered by an excessive optimistic lever effect of “degenerate” traders. These leverage bets followed the liquidation of a large position held by the so-called hyperliquid whale nearly $ 104,000.
This merchant, known by the pseudonym “James Wynn”, would have suffered losses greater than $ 100 million in a week.
Superbitcoinbro noted that traders expecting an immediate rebound in the Bitcoin price were blind, because the experienced market players had already planned the purchase pressure that followed. This maneuver, often called “bull trap”, prosperous on the excessive confidence of buyers, especially after an unexpected price drop.
While the public quarrel between Elon Musk and US President Donald Trump drew considerable attention, it is difficult to link the dispute directly to Bitcoin’s decline. The S&P 500 only closed 0.55% on June 5, a modest decision which does not suggest generalized distress of the market.
Risks and speculation of the economic recession on the Bitcoin Guard
Bitcoin traders remain concerned about the fact that a worldwide economic slowdown could lead investors to become more opposed to risk. Data from the US Labor Ministry have shown that weekly unemployment requests have reached their highest level in eight months in the last full week in May.
In addition, Adriana Kugler, governor of the American federal reserve said that prices pose “lowering risks for employment and production growth”.
The feeling of investors was still shaken by Michael Saylor and his firm strategy after refusing to disclose their Bitcoin Onchain addresses.
This lack of transparency has aroused renewed speculation that some guards could engage in a rehyperothecation, using the same bitcoin collaterals several times to guarantee various financial commitments.
We have just updated our #Bitcoin– ready -made loan agreement to make it clear:
Your #Bitcoin is never rechypothés on @Strike.
I have never been. pic.twitter.com/dzqsiubzao
– Jack Mallers (@jackmallers) June 4, 2025
There is no evidence of reprehensible acts among the main guards such as Coinbase police custody or digital loyalty assets, which are both subjected to regular audits. More likely, investors are looking for reasons for the low Bitcoin prices despite the continuous starters of institutional buyers such as Strategy, Gamestop, Metaplanet, Semler Scientific and Méliuz.
In relation: The whale secret card uses to liquidate you (learn to read it)
The frustration of investors has developed as three months have passed since the announcement of American Bitcoin strategic reserves, without significant developments.
Similarly, although there have been additional regulatory changes allowing banks to offer custody of digital assets, the funds negotiated in exchange for points (ETF) still lack key characteristics such as in -kind buyouts and implementation mechanisms.
Basically, the same concerns that sparked the drop in bitcoin to a hollow of $ 100,430 on June 5 are not resolved. Merchants continue to worry about a potential economic recession, the possibility that the guards engage in the rehylypothecation of Bitcoin and the lack of continuous clarity concerning the role and implementation of American Bitcoin strategic reserves.
This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are the only of the author and do not reflect or do not necessarily represent the opinions and opinions of Cointellegraph.
