Bitcoin Rebounds Amid Trump - Musk Clash and Jobs Report Anticipation
Bitcoin (BTC) regained ground on Friday, climbing to $104,853.47 up 1.90% after an overnight dip triggered by public tensions between former President Donald Trump and tech magnate Elon Musk. The rebound comes ahead of key U.S. labor market data, which is expected to reveal a slowdown in hiring for May.
Market Overview and Recovery
Major cryptocurrencies joined BTC in a rally. Ethereum rose 1.10% to $2,489.15, XRP gained 1.66%, and SUI jumped nearly 10%. Analysts are closely watching the upcoming nonfarm payrolls report, with expectations that weaker data could strengthen the case for interest rate cuts.
In the short term, weak data may support BTC to continue the rebound. The market is concerned about Friday's non-farm payrolls report, if it again shows that the labor market cooling, will strengthen the year rate cut expectations.
Bitunix Analysts
Political Tensions and Market Sentiment
A high-profile feud between Trump and Musk over tax reform and budget concerns sparked fears across markets. The crypto sector reacted sharply with over $830 million in liquidations, especially affecting leveraged positions.
A public clash between Elon Musk and Donald Trump shook investor confidence, highlighting fractures within political and business leadership.
Valentin Fournier
The BRN research head advised a cautious, low-exposure approach, noting any recovery would require a strong fundamental driver.
Circle’s Explosive Debut and Institutional Growth
Circle, the company behind USDC, saw its stock soar 168% on its first day of trading, closing at $83.23 from its IPO price of $31. Trading volume topped 47.8 million shares, and the market cap reached $18.5 billion evoking memories of Coinbase’s landmark listing in 2021.
Meanwhile, open interest in CME Bitcoin futures hit a record high of 217 holders, pointing to rising institutional participation. Uber's CEO also confirmed the company is evaluating the integration of stablecoins as a payment option.
Global Economic Indicators to Watch
In macroeconomics, investors await Canadian and U.S. employment data, both scheduled for June 6. Analysts expect slight upticks in unemployment and reduced hiring, which could influence Federal Reserve policy.
U.S. Nonfarm Payrolls Est.: 130K (Prev. 177K)
Unemployment Rate Est.: 4.2%
Canada Employment Change Est.: -15K
Crypto-Specific Events and Launches
Several blockchain events are slated for the coming days, including:
June 6: Sia (SC) activates Phase 1 of V2 hard fork
June 10: House hearing on the Digital Asset Market Clarity Act
June 16: ARKB executes a 3-for-1 share split
June 26: Coinbase delists four tokens
Technical and Market Analysis
BTC rose 3.14% to $103,738.42 but dipped slightly in 24-hour tracking. Ethereum remained stable. Perpetual funding rates for BTC turned slightly negative, hinting at increased short positions, while altcoins like DOGE and SOL saw rising interest.
Meanwhile, XRP’s BTC-denominated chart revealed a falling wedge pattern often a bullish reversal indicator suggesting potential for relative outperformance.
Crypto Stocks and ETF Movements
Crypto-linked equities experienced mixed trading. Coinbase gained 2% in pre-market after a 4.61% loss. Circle surged further to $95.11 in early trade. Spot BTC ETFs saw a net outflow of $278.4 million, while ETH ETFs attracted $11.3 million in net inflows.
Total BTC holdings in ETFs stood at ~1.20 million BTC, while ETH ETF holdings totaled ~3.76 million ETH.
Conclusion: Cautious Optimism
As the crypto sector reacts to both macroeconomic data and political developments, short-term sentiment remains fragile. However, increasing institutional interest and upcoming regulatory dialogues offer a foundation for potential growth.