Bitcoin Tests $110,000 Again As Institutional Interest Spikes and Musk Apologizes to Trump
Bitcoin is again flirting with $110,000 this week as a make-up between Elon Musk and Donald Trump looms on the horizon. This and a couple of other recent developments have lifted the market sentiment, allowing the Bitcoin price to resume its bullish attempts to surpass the recent all-time high.
This is the third time this week that the original cryptocurrency, Bitcoin, is striving to take the $110,000 mark by storm. It has been testing $110,000 and then retreating to $108,000 – $109,000 levels, resuming its surge after a couple of days.
Recent developments pushing Bitcoin upwards
The latest surge in the Bitcoin price came amid a fresh spike in investor optimism in the crypto space triggered by a series of developments, including regulatory ones that may affect the overall market capitalization of cryptocurrencies. Following the announcement of Elon Musk leaving the Department of Government Efficiency (shortened to sound similar to his favorite meme coin, D.O.G.E.), the volatility in the crypto market has increased. And the 5% Bitcoin plunge it caused, the original cryptocurrency displayed an impressive 10% increase from Thursday to Tuesday this week. That was the first time BTC broke above $110,000 recently, marking a significant milestone in the crypto market.
That price jump came after the new pro-crypto chairman of the Securities and Exchange Commission (SEC), Paul Atkins, delivered a speech in which he praised the innovation in the realm of altcoins and Bitcoin. Brought to the digital finance world by Decentralized Finance (DeFi). He stated that the values DeFi is built on are similar to those that are holding together the American democracy:
“The American values of economic liberty, private property rights, and innovation are in the DNA of the DeFi, or Decentralized Finance, movement.”
Atkins added that he was in favor of “affording greater flexibility to market participants to self-custody crypto assets”, particularly due to high and unnecessary transaction costs imposed by intermediaries and due to restrictions “to engage in staking and other on-chain activities.”
This positive tone from the head of the US regulator seems to have reignited investor appetite, and capital continued to flow into spot Bitcoin ETFs, which have steadily propelled Bitcoin price to new local highs (and even one historic one) this year. In May alone, these Bitcoin ETFs bought approximately $2.8 billion worth of Bitcoin, and now their total assets exceed $122 billion in crypto.
In the meantime, many analysts believe that Bitcoin holding strongly above $105,000 and its resilient attacks on $110,000 could be just the warm-up before Satoshi Nakamoto’s revolutionary invention performs a mind-boggling price breakout and reaches a new all-time high.
Strategy upsizes its offering to $1 billion; launches STRD on Nasdaq
Apart from the ETFs, another major entity continues to add Bitcoin to its BTC Treasury – Strategy (formerly known as MicroStrategy). The company co-founded and helmed by BTC evangelist Michael Saylor announced another $110 million Bitcoin acquisition at the start of the week.
After that, announcements followed that Strategy was upsizing its fundraising STRD offering from $250 million to $1 billion, and then, on Wednesday, the excitement among cryptocurrencies was palpable. Saylor tweeted that STRD would start trading on the Nasdaq exchange. This is the third preferred stock backed by Bitcoin issued by the company. The other two in this series are STRK and STRF, which were also issued to raise funds and let investors hold Strategy buy more Bitcoin to receive BTC yield on them later.
Saylor explained that STRD is directly collateralized by Bitcoin and is yet another tool investors can use to gain BTC exposure without having to hold this asset directly. The company now holds almost 600,000 Bitcoins, contributing significantly to its market capitalization. With these statements and new Bitcoin acquisitions, Saylor and Strategy continue to make headlines across not only crypto but top-tier mainstream media as well.
Elon Musk gives public apology to Donald Trump
Another factor that may have contributed to the Bitcoin price action is that tech magnate Elon Musk has offered a public apology to the US president Trump after their public falling out that occurred on their social media platforms (X and Truth Social) last week.
“I regret some of my posts about President @realDonaldTrump last week. They went too far.”
The tech magnate also removed some of his earlier X posts about Trump, including the one saying that his name was mentioned in the Epstein documents. The initial dispute arose as Musk confronted the tax-and-spending bill proposed to Congress and supported by Trump. Musk believes that this bill will increase the US national debt by several trillion dollars over the next few years and will destroy all the progress Musk achieved with the D.O.G.E. team.
In light of that quarrel between the two titans, many Bitcoin maximalists began suggesting that Musk should go all in on Bitcoin, assuming that, in this case, the BTC price would definitely skyrocket. But the eccentric billionaire did not follow their advice.
Max Keiser, a Bitcoin advisor to El Salvador’s president, tweeted that the recent trends could lead to Bitcoin soaring even higher. Musk would not buy Bitcoin, despite its recent surge and the increasing interest in cryptocurrencies. because “he knows the higher BTC goes, the lower US bonds go – and rates higher – threatening the US (and global) economy’s viability & existence.”
Overall, all eyes are now on Bitcoin charts, waiting to see where the price will go next and if a new all-time high is near indeed.
