Bitcoin (BTC) price action
has entered a critical juncture as June 2025 unfolds, with the
world’s largest cryptocurrency trading on Monday, 2 June, 2025, around $104,823
after retreating from recent highs near $112,000. The current market dynamics
present both opportunities and risks for retail traders, as technical patterns
suggest potential volatility ahead while institutional sentiment remains
cautiously optimistic.
Moreover, Elon Musk’s latest
venture into cryptocurrency-adjacent technology has once again captured market
attention, though this time with less fanfare than his previous Bitcoin-related
announcements
In the
latest Elon Musk development affecting crypto markets, the tech
billionaire announced the launch of XChat, a new messaging app featuring what
he calls “Bitcoin-style encryption.” However, this Bitcoin news has
failed to generate positive market momentum, with experts questioning the
technical claims behind the offering.
All new XChat is rolling out with encryption, vanishing messages and the ability to send any kind of file. Also, audio/video calling.
This is built on Rust with (Bitcoin style) encryption, whole new architecture.
— Elon Musk (@elonmusk) June 1, 2025
“All new
XChat is rolling out with encryption, vanishing messages and the ability to
send any kind of file. Also, audio/video calling,” said Musk.
Elon Musk’s XChat
announcement has drawn criticism from cybersecurity professionals who point out
that Bitcoin primarily uses digital signatures rather than encryption. Ian
Miers, Assistant Professor of Computer Science at the University of Maryland,
noted that “Bitcoin primarily uses signatures, not encryption,”
highlighting the confusion in Musk’s marketing approach.
Needless to say “Bitcoin style” and “Rust” are not descriptions of an encryption scheme, nor are they strong indicators of security for a messaging app. Also, unless encrypted DMs are only in app, odds are they aren’t just in Rust.
— Ian Miers (@secparam) June 1, 2025
The Bitcoin
price remained relatively stable near $105,000 following the XChat
announcement, suggesting that Elon Musk’s influence on crypto markets
may be waning compared to previous years when his tweets could trigger
significant price movements.
Bitcoin price today. Source: CoinMarketCap
Current Bitcoin Price
Action Today: Bear Flag Formation Signals Caution
According
to my technical analysis, the Bitcoin price has formed a textbook
bear flag pattern on the four-hour chart, creating concerns about potential
downside movement. This bearish continuation pattern emerged after BTC
bottomed at approximately $103,100 on May 31, with the cryptocurrency
consolidating in an upward parallel channel following the sharp decline from
its $111,814 all-time high reached on May 22.
The bear
flag pattern projects a potential Bitcoin price target of $97,709
if the support at $105,000 fails to hold. This technical setup should be
closely monitored with the psychological support levels, particularly the $100,000
mark and the yearly opening around $92,000.
Bitcoin technical analysis. Source: Tradingview.com
Key
resistance and support levels to watch:
Immediate
resistance: $108,000 – $112,000Critical
support: $103,000 – $105,000Major support: $97,600 (200-day moving
average)Bearish target: $85,000 in worst-case
scenario
Expert Debunks Musk’s
XChat Encryption Claims and Bitcoin News
Dr. Kirill Kretov from CoinPanel provided a comprehensive analysis of Elon Musk’s XChat
announcement for FinanceMagnates.com, offering crucial insights for traders
trying to understand the implications for Bitcoin price action.
“I see
no direct link between Elon Musk’s announcement of X-Chat and Bitcoin itself,
except for his mention of ‘Bitcoin style encryption,’ which is extremely vague
and lacks technical detail,” Dr. Kretov explains. His analysis reveals
three critical points that retail traders should consider:
Impact
on Bitcoin’s Future:
Dr. Kretov suggests the announcement will have minimal effect on Bitcoin
adoption or price, noting that Musk’s reference to “Bitcoin style
encryption” is likely just shorthand for cryptographic principles that
Bitcoin popularized but are now widely adopted across the software industry.
There’s no indication that XChat will integrate with Bitcoin’s infrastructure
for payments or settlements.Layer 1
and Layer 2 Considerations: The expert dismisses the possibility of Musk utilizing Bitcoin’s
existing infrastructure, explaining that “Bitcoin Layer 1 is designed for
secure, decentralized transactions and is not optimized for real-time
messaging.” Even Layer 2 solutions like Lightning Network remain focused
on payments rather than messaging applications.Competitive
Threat Assessment:
Dr. Kretov concludes that XChat poses no serious threat to Bitcoin price or
adoption, stating that “Bitcoin’s primary use case as a decentralized,
censorship-resistant monetary network remains unmatched by any social
media-native tokens.” Instead, he suggests the development might challenge
smaller tokens like TON in Telegram rather than Bitcoin itself.
AI Models Bitcoin Price
Predictions Show Recovery Despite Short-Term Weakness
Despite the
current bearish technical setup, artificial intelligence models remain
optimistic about Bitcoin price prospects for the remainder of June
2025. ChatGPT’s analysis suggests a base-case prediction of $118,000 by June
30, highlighting Bitcoin’s resilience and the possibility of renewed bullish
sentiment.
The AI
model estimates a 65% probability that Bitcoin will finish June above
$110,000, though breaking $130,000 would require a major bullish catalyst.
Meanwhile, xAI’s Grok offers a more conservative outlook, predicting Bitcoin
will trade around $108,000 by month-end, assuming continued institutional
inflows and favorable regulatory developments.
Multiple
price prediction models show varying scenarios:
Changelly forecast: Peak at $137,189 by June
7, with support at $104,329LongForecast projection: Range between $115,561
and $132,957 for JuneCoinDCX analysis: Potential test of
$114,000-$116,000 mid-June if bulls maintain control
Bitcoin Price Prediction Table
Forecast Source
End of 2025 Target
Long-Term Target
Standard Chartered (Geoff
Kendrick)
$120,000 by Q2 2025; $200,000 by end of 2025
$500,000 by 2028
(multi-year path)
VanEck (Matthew
Sigel)
Peak around $180,000 in 2025 (dual-cycle peak scenario)
No official 2030 target (expects new
highs beyond 2025; e.g. next cycle >$400K)
ARK Invest (Cathie
Wood)
(Short-term not specified; bullish
trajectory)
$1.2 million base case by 2030; $2.4
million bull case; bear case ~$500K
Why Is Bitcoin Going Down?
Trade Tensions and Market Dynamics
The
recent Bitcoin price decline can be attributed to several
interconnected factors affecting global risk sentiment. Rising US-China trade
tensions have prompted investors to move away from risk assets, including
cryptocurrencies, creating downward pressure on Bitcoin and other digital
assets.
I also
discussed why
the price of Bitcoin is falling in last week’s analysis, which covered four
consecutive days of broad market declines. In addition to Bitcoin, Ethereum,
Dogecoin, and XRP also lost value.
Primary
factors driving current weakness:
Geopolitical tensions: US-China trade
negotiations creating uncertaintyTechnical resistance: Strong selling pressure
near $112,000 levelProfit-taking: Traders securing gains
after May’s 11% rallyCorrelation with traditional
markets: Increased
sensitivity to macroeconomic conditions
The
cryptocurrency market’s correlation with traditional financial markets has
become more pronounced, with central bank decisions and labor market data
increasingly driving crypto price movements. This shift represents a
significant change from Bitcoin’s earlier days when it traded more
independently of traditional asset classes.
Bitcoin Trading Strategy
and Risk Management for Retail Traders
Given the
current market dynamics, retail traders should focus on risk management rather
than aggressive positioning. The formation of the bear flag pattern suggests
waiting for clear directional signals before entering new positions,
particularly around the critical $104,800 support level.
Recommended
approach for retail traders:
Monitor key levels: Watch for breaks above
$108,000 or below $103,000Volume confirmation: Look for increased
trading volume to confirm breakoutsRisk management: Use stop-losses and
position sizing appropriate for volatilityPatience: Avoid FOMO trading during
uncertain market conditions
The Bitcoin
price outlook for June 2025 hinges on whether bulls can defend the
$105,000 level and rebuild momentum toward new highs. While short-term
technical indicators suggest caution, the longer-term institutional adoption
narrative remains intact, providing a foundation for future growth.
As we
navigate this critical period, retail traders should remain informed about both
technical developments and fundamental factors affecting the cryptocurrency
market. The intersection of traditional finance and digital assets continues to
evolve, creating both opportunities and challenges for those willing to adapt
their strategies accordingly.
Bitcoin News, FAQ
Is Bitcoin Going to Rise
Again?
Yes,
Bitcoin is expected to rise again based on multiple institutional forecasts and
historical patterns. The cryptocurrency market has demonstrated remarkable
resilience through previous crashes in 2013, 2018, and 2022, each time emerging
stronger and more mature3. Several factors support a
recovery outlook for 2025, including rising institutional demand, favorable
post-halving supply dynamics, and robust on-chain fundamentals indicating
long-term holders are in control.
What If You Put $1000 in
Bitcoin 5 Years Ago?
A $1,000
investment in Bitcoin made 5 years ago (2019) would have grown to approximately
$8,402 based on October 2024 pricing data. This represents a remarkable
740% return on investment, demonstrating Bitcoin’s potential for long-term
wealth creation despite short-term volatility.
For
perspective on Bitcoin’s historical performance:
1 year ago (2023): $1,000 would be worth
approximately $2,37010 years ago (2014): $1,000 would now be
valued at $176,99415 years ago (2009): $1,000 invested at
Bitcoin’s inception would be worth an astounding $68.3 billion
Why Has Bitcoin Dropped
Today?
Bitcoin
dropped today primarily due to stalled US-China trade talks, which created
macroeconomic uncertainty and triggered risk-off sentiment among investors. US Treasury Secretary Scott
Bessent’s confirmation that trade negotiations with China have stalled dampened
investor sentiment across global markets.
Additional
factors contributing to today’s decline include massive liquidations totaling
over $683.4 million in crypto futures within 24 hours, with long positions
accounting for $617.85 million of these liquidations. The technical
breakdown occurred as the total crypto market cap broke below the critical
$3.35 trillion support level, triggering algorithmic selling and stop-loss
orders.
Who Owns 90% of Bitcoin?
No single
entity owns 90% of Bitcoin. The largest individual holder is Satoshi Nakamoto,
Bitcoin’s anonymous creator, who owns an estimated 968,452 BTC (approximately
4.6% of total supply). These bitcoins are spread across approximately
20,000 addresses and have remained untouched since Satoshi left the project in
2010.
The largest
institutional holder is MicroStrategy, which has acquired 568,840 BTC,
representing roughly 2.7% of the total supply.
Bitcoin (BTC) price action
has entered a critical juncture as June 2025 unfolds, with the
world’s largest cryptocurrency trading on Monday, 2 June, 2025, around $104,823
after retreating from recent highs near $112,000. The current market dynamics
present both opportunities and risks for retail traders, as technical patterns
suggest potential volatility ahead while institutional sentiment remains
cautiously optimistic.
Moreover, Elon Musk’s latest
venture into cryptocurrency-adjacent technology has once again captured market
attention, though this time with less fanfare than his previous Bitcoin-related
announcements
In the
latest Elon Musk development affecting crypto markets, the tech
billionaire announced the launch of XChat, a new messaging app featuring what
he calls “Bitcoin-style encryption.” However, this Bitcoin news has
failed to generate positive market momentum, with experts questioning the
technical claims behind the offering.
All new XChat is rolling out with encryption, vanishing messages and the ability to send any kind of file. Also, audio/video calling.
This is built on Rust with (Bitcoin style) encryption, whole new architecture.
— Elon Musk (@elonmusk) June 1, 2025
“All new
XChat is rolling out with encryption, vanishing messages and the ability to
send any kind of file. Also, audio/video calling,” said Musk.
Elon Musk’s XChat
announcement has drawn criticism from cybersecurity professionals who point out
that Bitcoin primarily uses digital signatures rather than encryption. Ian
Miers, Assistant Professor of Computer Science at the University of Maryland,
noted that “Bitcoin primarily uses signatures, not encryption,”
highlighting the confusion in Musk’s marketing approach.
Needless to say “Bitcoin style” and “Rust” are not descriptions of an encryption scheme, nor are they strong indicators of security for a messaging app. Also, unless encrypted DMs are only in app, odds are they aren’t just in Rust.
— Ian Miers (@secparam) June 1, 2025
The Bitcoin
price remained relatively stable near $105,000 following the XChat
announcement, suggesting that Elon Musk’s influence on crypto markets
may be waning compared to previous years when his tweets could trigger
significant price movements.
Bitcoin price today. Source: CoinMarketCap
Current Bitcoin Price
Action Today: Bear Flag Formation Signals Caution
According
to my technical analysis, the Bitcoin price has formed a textbook
bear flag pattern on the four-hour chart, creating concerns about potential
downside movement. This bearish continuation pattern emerged after BTC
bottomed at approximately $103,100 on May 31, with the cryptocurrency
consolidating in an upward parallel channel following the sharp decline from
its $111,814 all-time high reached on May 22.
The bear
flag pattern projects a potential Bitcoin price target of $97,709
if the support at $105,000 fails to hold. This technical setup should be
closely monitored with the psychological support levels, particularly the $100,000
mark and the yearly opening around $92,000.
Bitcoin technical analysis. Source: Tradingview.com
Key
resistance and support levels to watch:
Immediate
resistance: $108,000 – $112,000Critical
support: $103,000 – $105,000Major support: $97,600 (200-day moving
average)Bearish target: $85,000 in worst-case
scenario
Expert Debunks Musk’s
XChat Encryption Claims and Bitcoin News
Dr. Kirill Kretov from CoinPanel provided a comprehensive analysis of Elon Musk’s XChat
announcement for FinanceMagnates.com, offering crucial insights for traders
trying to understand the implications for Bitcoin price action.
“I see
no direct link between Elon Musk’s announcement of X-Chat and Bitcoin itself,
except for his mention of ‘Bitcoin style encryption,’ which is extremely vague
and lacks technical detail,” Dr. Kretov explains. His analysis reveals
three critical points that retail traders should consider:
Impact
on Bitcoin’s Future:
Dr. Kretov suggests the announcement will have minimal effect on Bitcoin
adoption or price, noting that Musk’s reference to “Bitcoin style
encryption” is likely just shorthand for cryptographic principles that
Bitcoin popularized but are now widely adopted across the software industry.
There’s no indication that XChat will integrate with Bitcoin’s infrastructure
for payments or settlements.Layer 1
and Layer 2 Considerations: The expert dismisses the possibility of Musk utilizing Bitcoin’s
existing infrastructure, explaining that “Bitcoin Layer 1 is designed for
secure, decentralized transactions and is not optimized for real-time
messaging.” Even Layer 2 solutions like Lightning Network remain focused
on payments rather than messaging applications.Competitive
Threat Assessment:
Dr. Kretov concludes that XChat poses no serious threat to Bitcoin price or
adoption, stating that “Bitcoin’s primary use case as a decentralized,
censorship-resistant monetary network remains unmatched by any social
media-native tokens.” Instead, he suggests the development might challenge
smaller tokens like TON in Telegram rather than Bitcoin itself.
AI Models Bitcoin Price
Predictions Show Recovery Despite Short-Term Weakness
Despite the
current bearish technical setup, artificial intelligence models remain
optimistic about Bitcoin price prospects for the remainder of June
2025. ChatGPT’s analysis suggests a base-case prediction of $118,000 by June
30, highlighting Bitcoin’s resilience and the possibility of renewed bullish
sentiment.
The AI
model estimates a 65% probability that Bitcoin will finish June above
$110,000, though breaking $130,000 would require a major bullish catalyst.
Meanwhile, xAI’s Grok offers a more conservative outlook, predicting Bitcoin
will trade around $108,000 by month-end, assuming continued institutional
inflows and favorable regulatory developments.
Multiple
price prediction models show varying scenarios:
Changelly forecast: Peak at $137,189 by June
7, with support at $104,329LongForecast projection: Range between $115,561
and $132,957 for JuneCoinDCX analysis: Potential test of
$114,000-$116,000 mid-June if bulls maintain control
Bitcoin Price Prediction Table
Forecast Source
End of 2025 Target
Long-Term Target
Standard Chartered (Geoff
Kendrick)
$120,000 by Q2 2025; $200,000 by end of 2025
$500,000 by 2028
(multi-year path)
VanEck (Matthew
Sigel)
Peak around $180,000 in 2025 (dual-cycle peak scenario)
No official 2030 target (expects new
highs beyond 2025; e.g. next cycle >$400K)
ARK Invest (Cathie
Wood)
(Short-term not specified; bullish
trajectory)
$1.2 million base case by 2030; $2.4
million bull case; bear case ~$500K
Why Is Bitcoin Going Down?
Trade Tensions and Market Dynamics
The
recent Bitcoin price decline can be attributed to several
interconnected factors affecting global risk sentiment. Rising US-China trade
tensions have prompted investors to move away from risk assets, including
cryptocurrencies, creating downward pressure on Bitcoin and other digital
assets.
I also
discussed why
the price of Bitcoin is falling in last week’s analysis, which covered four
consecutive days of broad market declines. In addition to Bitcoin, Ethereum,
Dogecoin, and XRP also lost value.
Primary
factors driving current weakness:
Geopolitical tensions: US-China trade
negotiations creating uncertaintyTechnical resistance: Strong selling pressure
near $112,000 levelProfit-taking: Traders securing gains
after May’s 11% rallyCorrelation with traditional
markets: Increased
sensitivity to macroeconomic conditions
The
cryptocurrency market’s correlation with traditional financial markets has
become more pronounced, with central bank decisions and labor market data
increasingly driving crypto price movements. This shift represents a
significant change from Bitcoin’s earlier days when it traded more
independently of traditional asset classes.
Bitcoin Trading Strategy
and Risk Management for Retail Traders
Given the
current market dynamics, retail traders should focus on risk management rather
than aggressive positioning. The formation of the bear flag pattern suggests
waiting for clear directional signals before entering new positions,
particularly around the critical $104,800 support level.
Recommended
approach for retail traders:
Monitor key levels: Watch for breaks above
$108,000 or below $103,000Volume confirmation: Look for increased
trading volume to confirm breakoutsRisk management: Use stop-losses and
position sizing appropriate for volatilityPatience: Avoid FOMO trading during
uncertain market conditions
The Bitcoin
price outlook for June 2025 hinges on whether bulls can defend the
$105,000 level and rebuild momentum toward new highs. While short-term
technical indicators suggest caution, the longer-term institutional adoption
narrative remains intact, providing a foundation for future growth.
As we
navigate this critical period, retail traders should remain informed about both
technical developments and fundamental factors affecting the cryptocurrency
market. The intersection of traditional finance and digital assets continues to
evolve, creating both opportunities and challenges for those willing to adapt
their strategies accordingly.
Bitcoin News, FAQ
Is Bitcoin Going to Rise
Again?
Yes,
Bitcoin is expected to rise again based on multiple institutional forecasts and
historical patterns. The cryptocurrency market has demonstrated remarkable
resilience through previous crashes in 2013, 2018, and 2022, each time emerging
stronger and more mature3. Several factors support a
recovery outlook for 2025, including rising institutional demand, favorable
post-halving supply dynamics, and robust on-chain fundamentals indicating
long-term holders are in control.
What If You Put $1000 in
Bitcoin 5 Years Ago?
A $1,000
investment in Bitcoin made 5 years ago (2019) would have grown to approximately
$8,402 based on October 2024 pricing data. This represents a remarkable
740% return on investment, demonstrating Bitcoin’s potential for long-term
wealth creation despite short-term volatility.
For
perspective on Bitcoin’s historical performance:
1 year ago (2023): $1,000 would be worth
approximately $2,37010 years ago (2014): $1,000 would now be
valued at $176,99415 years ago (2009): $1,000 invested at
Bitcoin’s inception would be worth an astounding $68.3 billion
Why Has Bitcoin Dropped
Today?
Bitcoin
dropped today primarily due to stalled US-China trade talks, which created
macroeconomic uncertainty and triggered risk-off sentiment among investors. US Treasury Secretary Scott
Bessent’s confirmation that trade negotiations with China have stalled dampened
investor sentiment across global markets.
Additional
factors contributing to today’s decline include massive liquidations totaling
over $683.4 million in crypto futures within 24 hours, with long positions
accounting for $617.85 million of these liquidations. The technical
breakdown occurred as the total crypto market cap broke below the critical
$3.35 trillion support level, triggering algorithmic selling and stop-loss
orders.
Who Owns 90% of Bitcoin?
No single
entity owns 90% of Bitcoin. The largest individual holder is Satoshi Nakamoto,
Bitcoin’s anonymous creator, who owns an estimated 968,452 BTC (approximately
4.6% of total supply). These bitcoins are spread across approximately
20,000 addresses and have remained untouched since Satoshi left the project in
2010.
The largest
institutional holder is MicroStrategy, which has acquired 568,840 BTC,
representing roughly 2.7% of the total supply.
