Bitcoin Bounces Back: BTC Reclaims $105,000 Despite 2.14% Dip – What’s Next for Crypto?

The cryptocurrency market is no stranger to volatility, and Bitcoin (BTC) continues to keep traders on edge. As of June 7, 2025, Bitcoin has rebounded past $105,000 USDT, erasing yesterday’s dip below this critical psychological level, according to Odaily Planet Daily. Despite a 2.14% drop over the past 24 hours, this recovery signals resilience amid broader market turbulence, particularly fueled by the high-profile Trump-Musk feud. With institutional demand, technical indicators, and Web3 developments in play, what does this rebound mean for Bitcoin, the crypto market, and the future of decentralized finance? Let’s dive into the details, unpack the forces driving this movement, and explore what lies ahead for the world’s leading cryptocurrency.

Bitcoin’s Rollercoaster: The Rebound in Context

Bitcoin’s price action has been a wild ride in 2025, with the king of crypto hitting an all-time high of $111,970 on May 22, 2025, before facing bouts of volatility. According to Odaily, BTC briefly slipped toward $100,000 amid market jitters but has now clawed its way back to $105,000 USDT, narrowing its 24-hour loss to 2.14% as of June 7, 2025. This rebound aligns with posts on X, where

@CoinRank_io reported BTC breaking through $105,000, reflecting a $45.27 billion 24-hour trading volume and a $2.09 trillion market cap. Despite the dip, Bitcoin’s ability to hold above this key level underscores its strength in a market rattled by macroeconomic and political headwinds.

The 2.14% drop comes on the heels of broader market uncertainty, with $1 billion in crypto liquidations reported recently, including $324 million in Bitcoin long positions. This volatility was exacerbated by the ongoing Trump-Musk feud, which has shaken investor confidence. Trump’s threats to cut $38 billion in government contracts for Musk’s companies, including SpaceX and Tesla, coupled with Musk’s retaliatory X posts, have created a perfect storm for risk assets like crypto. Yet, Bitcoin’s swift recovery suggests that bulls are defending critical support levels, with $104,000–$105,200 acting as a fortress, according to

@web3guru_luk on X.

The Trump-Musk Feud: A Catalyst for Volatility

The public spat between President Donald Trump and Elon Musk has sent shockwaves through financial markets, with crypto bearing the brunt. Trump’s “Big Beautiful Bill”, a $4 trillion tax and spending package, clashed with Musk’s Department of Government Efficiency (DOGE) mission to slash the federal deficit. Musk’s criticism of the bill as a “disgusting abomination” prompted Trump to threaten $150 billion in market value for Tesla and SpaceX, leading to a 14% Tesla stock plunge and a 22% drop in Dogecoin. The $TRUMP memecoin also shed $100 million, reflecting the market’s sensitivity to their feud.

This political drama has directly impacted Bitcoin. As

@AlvaApp noted on X, “BTC is fueled by mounting institutional demand, but some traders are eyeing June profit-taking and a bearish MACD cross.” The feud’s fallout, including Musk’s X poll for a new “America Party” (supported by 80% of 3.2 million respondents), has introduced uncertainty about Trump’s pro-crypto promises, such as a strategic Bitcoin reserve and firing SEC Chairman Gary Gensler. Bitcoin’s dip below $105,000 coincided with $661 million in leveraged long liquidations, but its rebound suggests institutional buyers are stepping in at key support levels, as seen with Trump Media’s $2.5 billion Bitcoin treasury plan.

Technical Analysis: Where is Bitcoin Headed?

From a technical perspective, Bitcoin’s price action is a battleground of bullish and bearish signals. Here’s a breakdown of key indicators as of June 7, 2025:

• Support and Resistance: Bitcoin is holding above the $104,000–$105,200 support zone, reinforced by the 20-day exponential moving average (EMA). Resistance lies at $106,000–$111,000, with the all-time high of $111,970 as the next major hurdle. @web3guru_luk on X highlights “bullish long-term trends” with the 50-day and 200-day moving averages rising, but a “short-term bearish RSI divergence” suggests caution.
• Trading Volume: A 7% uptick in BTC/USD trading volume on exchanges like Coinbase and Binance indicates sustained interest despite ETF outflows of $267.5 million on March 5, 2025. High volume during the rebound points to strong buyer momentum.
• RSI and MACD: The 14-day Relative Strength Index (RSI) is hovering near oversold territory, signaling potential for a bullish reversal. However, a bearish MACD cross, as noted by @AlvaApp, warns of short-term downside risks unless BTC breaks above $106,000.
• Futures Market: The March 2026 Deribit Bitcoin Future at $111,388 reflects a 7.06% annualized basis rate, suggesting long-term holders are betting on price appreciation. This creates arbitrage opportunities for traders, as per Blockchain News.

Analysts like Willy Woo predict a surge to $118,000 if BTC breaches its previous high, while Dave the Wave warns of a potential correction to $90,000 in early June before a rebound to $160,000 by September, assuming a 9.22% monthly growth rate. The $105,200 support remains critical, with $94,400 as the next major floor if selling pressure intensifies.

Web3 and DeFi: A Safe Haven Amid Chaos?

While Bitcoin grapples with volatility, the broader Web3 and DeFi ecosystems offer resilience. The Trump-Musk feud has highlighted the risks of tying crypto to centralized figures, but decentralized platforms like Uniswap, Aave, and Hyperliquid continue to thrive with a $200 billion total value locked (TVL). These protocols operate independently of political drama, providing stability for users seeking to hedge against market swings.

• Airdrops as Opportunities: Projects like BlastUP, Berachain, and Eclipse are distributing tokens to early adopters, rewarding liquidity providers and community engagement. For instance, BlastUP’s second airdrop season allocates 20 million tokens, offering a low-risk way to capitalize on market dips.
• Layer 2 Scaling: Arbitrum, Optimism, and Base are reducing transaction costs, making DeFi accessible. Eclipse, an EVM-compatible Layer 2 on Solana, bridges Ethereum’s security with Solana’s speed, attracting developers and investors.
• Stablecoin Dominance: Tether’s USDT, with a $154 billion market cap and $120 billion in U.S. Treasuries, remains a cornerstone of DeFi liquidity. Its integration with the Bitcoin Lightning Network enables instant, low-fee transfers, cushioning the impact of BTC volatility.
• AI-Blockchain Synergy: Projects like Pond and Henjin AI leverage blockchain for decentralized AI, offering insights for DeFi investors. Pond’s $7.5 million funding from Delphi Ventures signals growing interest in this intersection.

As

@DeFi_Hanzo noted on X, “When whales fight, minnows thrive by farming airdrops.” The feud’s volatility could drive capital to DeFi, where users control their assets without reliance on centralized figures.

Broader Market Context: Macro and Political Forces

Bitcoin’s rebound occurs against a complex backdrop of macroeconomic and political factors:

1. Federal Reserve Policy: The Fed’s hawkish stance on 2025 rate cuts, as reported by Finance Magnates, triggered a $10,000 BTC drop to $98,760 in December 2024. The rebound to $105,000 reflects renewed confidence, but upcoming PMI reports and jobless claims could sway sentiment.
2. Institutional Adoption: Despite ETF outflows, institutional interest remains strong. Trump Media’s $2.5 billion Bitcoin investment and Metaplanet’s $5.4 billion equity raise for BTC purchases signal corporate adoption. The Bitcoin 2025 conference in Las Vegas (May 27–29) highlighted Bitcoin’s role as a treasury asset, with 30,000 attendees and major institutions collaborating on protocol advancements.
3. Global Developments: The feud’s impact extends to emerging markets, where 40% of USDT activity occurs. Trump’s proposed 25% tariffs on Canada and Mexico could disrupt crypto adoption, but Musk’s Starlink and X could drive Web3 growth in regions like Latin America, where Tether’s MXNT is gaining traction.
4. Regulatory Uncertainty: Trump’s pro-crypto pledges, including pardoning Ross Ulbricht and proposing a Bitcoin reserve, are at risk if the feud escalates. Musk’s exit from DOGE and his push for an America Party could shift regulatory momentum to other advocates like Howard Lutnick or Dan Gallagher.

What’s Next for Bitcoin and Web3?

Bitcoin’s rebound to $105,000 USDT is a testament to its resilience, but the road ahead is fraught with challenges and opportunities:

• Bullish Case: If BTC breaks above $106,000, analysts like Willy Woo see a path to $118,000 by mid-2025, driven by institutional buying and ETF inflows. Tim Draper’s $250,000 prediction by year-end remains ambitious but reflects long-term optimism. The Bitcoin Lightning Network and Taproot upgrades enhance scalability, supporting real-world adoption.
• Bearish Risks: A failure to hold $104,000 could see BTC test $94,400 or even $90,000, as warned by Dave the Wave. The Trump-Musk feud and Fed policy could exacerbate volatility, with $1 billion in liquidations signaling leveraged market fragility.
• Web3 Opportunities: The feud underscores Web3’s strength. DeFi platforms like Hyperliquid, with its 38.88% token allocation for future airdrops, and Berachain’s Proof-of-Liquidity model offer alternatives to centralized volatility. Story Protocol’s $140 million funding for IP tokenization highlights Web3’s diversification.

Actionable Steps for Investors

To navigate this turbulent landscape, consider these strategies:

1. Diversify Exposure: Balance BTC holdings with stablecoins like USDT or DeFi tokens like UNI and AAVE to hedge against volatility.
2. Engage in Airdrops: Join campaigns like BlastUP, Eclipse, or Kamino Finance to earn tokens during market dips.
3. Monitor Technicals: Watch the $105,200 support and $106,000 resistance. Use tools like TradingView for real-time charts and RSI analysis.
4. Stay Informed: Follow X accounts like @onchain_wire and @CoinRank_io for market updates, and track DefiLlama for DeFi TVL trends.
5. Manage Risk: Set stop-loss orders to protect against sudden drops, given the $422 million in long liquidations reported by @Erica__Hazel.

Final Thoughts: Bitcoin’s Resilience in a Storm

Bitcoin’s rebound past $105,000 USDT, despite a 2.14% 24-hour drop, is a powerful reminder of its staying power. The Trump-Musk feud has injected uncertainty, but BTC’s ability to defend key support levels reflects institutional and community strength. As Web3 projects like Uniswap, Berachain, and Pond thrive, the decentralized ecosystem offers a counterbalance to centralized drama. Whether you’re a HODLer, trader, or DeFi enthusiast, now’s the time to stay vigilant, seize opportunities, and embrace the decentralized ethos.

Keep an eye on CoinMarketCap, Blockchain News, and X for real-time updates. As

@RoundtableSpace exclaimed, “$BTC RECLAIMS $105,000 ERASING THE ENTIRE DIP FROM YESTERDAY. WE’RE SO BACK.” The crypto revolution continues—will you ride the wave?

Sources: Odaily Planet Daily, CoinMarketCap, Cointelegraph, Blockchain News, Finance Magnates, Posts on X