Main takeout:
Bitcoin (BTC) plunged to the lowest level in four weeks before June 6 and rose to $ 105,000.
Merchants, in particular, questioned whether the rapid decrease in the US President Trump and China’s President Xi Jinping resumed the debate on import tariffs.
The reason for the sudden drop in Bitcoin on June 5 may not be completely clear. Nevertheless, some contributors have emerged, including fear of potential economic recession, ongoing uncertainty over US strategic Bitcoin reserves, and speculation that managers can participate in reconstruction practices.
If these concerns are valid, you can’t make a profit to $ 110,000.
Effect on hyper liquid whales and Bitcoin of Elon Musk
According to some analysts, including X User SUPERBITCOINBRO, falling to $ 100,430 on June 5 was mainly caused by excessive optimistic leverage of the “Degenerate” trader. This leverage bets followed the large -scale liquidation of the so -called hyperklicade whale, which is nearly $ 104,000.
The merchant, known as the “James Wynn” pseudonym, has lost more than $ 100 million within a week.
Superbitcoinbro pointed out that the experienced market participants already expected the immediate rebound of Bitcoin prices because they had already anticipated purchasing pressure after that. Often, this maneuver, which is called “bull ship,” flourishes the buyer’s overexposure, especially after unexpected prices are rapid.
The public disagreements between Elon Musk and US President Donald Trump attracted considerable attention, but it is difficult to connect Bitcoin’s decline and direct disputes. The S & P 500 closed only 0.55% on June 5.
Economic recession and speculation of Bitcoin custody
Bitcoin traders are concerned that investors can avoid more risk due to the upcoming global economy. According to data from the US Department of Labor, the weekly unemployment claims rose to the highest level in eight months in the last week of May.
In addition, the US Federal Reserve Bank Adriana Kugler said that tariffs are “risk of falling employment and production growth.”
Michael Saylor and his company’s strategy did not disclose the onchain bitcoin address, and the investor’s feelings were more shaken by the disappointment of Michael Saylor and his company’s strategy.
This lack of transparency has caused a new speculation that some managers can use the same materials using the same bitcoin collateral several times to ensure other financial promises.
We just updated #Bitcoin-Purci loan contract to make a decision:
your #Bitcoin Never reconstruct @strike.
It would never have been. pic.twitter.com/dzqsiubzao
-Jack Mallers (@jackmallers) June 4, 2025
There is no wrong evidence among major managers, such as COINBASE custody or Fidelity Digital Assets, both are subject to regular audit. Perhaps investors are looking for reasons for Bitcoin’s price weakness despite the continuous inflow of institutional buyers such as strategies, Gamestop, Metaplanet, Semler Scientific and Méliuz.
relevant: Secret Map Whales use it to liquidate you (learn how to read)
Three months after the announcement of the US strategic Bitcoin reserves, investors frustration increased, and since then, there has been no significant development.
Similarly, despite the fact that banks have been able to provide digital asset custody, SPOT Exchange-Traded Fund (ETF) still lack major functions such as on-site repayment and steaking mechanisms.
Basically, the same concerns still remain unresolved as the Bitcoin’s decline was triggered at $ 100,430 on June 5. Merchants continue to worry about the potential economic recession, the possibility of a manager involved in the reorganization of Bitcoin, and the lack of clarity in the role and implementation of the US strategic Bitcoin reserves.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.