Crypto Market Brief: This week delivered a perfect storm of political drama and institutional adoption. While Trump and Musk’s public feud triggered massive crypto liquidations, major institutions kept buying like nothing happened. Here’s what really moved markets and why it matters.
The Trump-Musk Explosion That Rocked Everything
The week’s biggest story wasn’t crypto news, but it hammered crypto markets anyway. Trump and Musk’s public feud erupted over Trump’s “One Big Beautiful Bill,” a tax package adding $2.4 trillion to the budget deficit over ten years.
Source | TruthSocial @realDonaldTrump
The drama escalated fast. Musk, who donated $288 million to Trump’s campaign and led the Department of Government Efficiency (DOGE), opposed the bill for undermining his cost-cutting efforts. Trump fired back, accusing Musk of protecting EV subsidies, threatening government contract cancellations, and calling him “CRAZY.” Musk escalated with personal attacks, referenced the Epstein Files, and quit DOGE.
Market Impact:
- Dogecoin: -10% in one day, -22% for the week
- Bitcoin: 104,861 → 101,659 USDT (-3%)
- Ethereum: -7% to 2,432 USDT
- Solana: -7% to 144 USDT
- Trump’s TRUMP coin: -100 million USDT in value
- Total crypto liquidations: Nearly 1 billion USDT
The twist? Trump later said the conflict was “okay” and arranged a Friday call with Musk. Political winds shift fast, markets need to stay nimble.
Institutional Adoption Accelerates Despite Drama
While politicians fought, big money kept flowing into crypto. BlackRock’s ETHA fund recorded its ninth straight day of inflows, collecting over 492 million USDT in nine trading sessions. Institutional demand isn’t scared by political noise.
Source | Arkham
Corporate Buying Spree:
- Metaplanet: Plans to raise $5.4 billion for Bitcoin, targeting 210,000+ BTC by 2027
- Metaplanet: Bought 1,088 BTC for $114 million, total holdings now 8,888 BTC ($930 million)
- MicroStrategy: Added 705 BTC at $106,495 average ($75.1 million total)
- Treasure Global: Launched $100 million digital asset strategy ($50 million equity + $50 million institutional)
These companies aren’t waiting for perfect conditions, they’re treating crypto as long-term value storage regardless of short-term political theater.
Ethereum’s Supply Squeeze Story
Ethereum hit major milestones this week. Over 340,000 ETH (~900 million USDT) now sits in the staking queue, the highest in over a year. This surge followed clearer SEC guidance that boosted institutional confidence.
The supply dynamics are tightening. ETH exchange inventory dropped to 7-year lows. Combined with surging staking demand, this creates a supply squeeze that could support higher prices long-term.
Source | Glassnode
Infrastructure development accelerated too. Hyperliquid outperformed TRON, Ethereum, and Solana in May revenue. SUI approaches XRP in total transactions, showing newer networks gaining real adoption.
Source | Cryptorank
Global Regulatory Landscape Shifts
Dubai Doubles Down
- DFSA officially recognized Ripple’s RLUSD stablecoin for 7,000+ global companies in DIFC
- Solana Foundation signed partnership with VARA covering talent development and economic zones
- SUI Network partnered with VARA for startup support and Web3 ecosystem growth
US Mixed Signals
- Positive: Crypto groups push developer protection legislation; Hester Peirce; SEC chairman advocates Bitcoin ETF “in-kind redemption”
- Concerning: California requires 3-year inactive crypto transfers to state custody
- Senator Lummis: “Financial security is national security. We need strategic Bitcoin reserves.”
Global Economic Tensions Rise
The macro environment grew more complex. The ECB (EU Central Bank) cut rates from 2.25% to 2.00%, their eighth cut in a year. This aggressive easing versus US policy could drive more capital toward Bitcoin as an inflation hedge.
US Financial Metrics:
- Debt growth: $1 trillion every 100 days
- M2 money supply: All-time high $21.86 trillion
- Tariff revenues: Record $22.3 billion in May (up from $16.5 billion in April)
- Federal revenue from tariffs: 4% (previously 2%)
Trade War Updates:
- US extended Chinese tariff suspension until August 31
- China accused US of violating trade agreements
- Trump on Xi: “I love President Xi… but he’s very tough and very hard to make a deal with”
Source | TruthSocial @realDonaldTrump
- Both presidents agreed to restart talks “as soon as possible”
Corporate Crypto Integration Accelerates
Major companies kept exploring crypto adoption. Apple, X (Twitter), and Airbnb are studying cryptocurrency integration per Fortune. Uber examines stablecoin payments for the third time since 2021, though skeptics question their commitment.
Mastercard reported 50% of European e-commerce transactions are now tokenized, targeting 100% by 2030. Even Russia’s Sber Bank launched Bitcoin-linked bonds and futures trading.
Platform Economy and Meme Coins
Pump.fun plans to raise 1 billion USDT at a 4 billion USDT valuation, potentially pressuring Solana meme coins. Meanwhile, Trump’s World Liberty Financial sent cease-and-desist letters over unauthorized Trump wallet projects.
WLFI Updates:
- Raised ~$550 million through token sales
- Launched USD1 stablecoin
- Airdropped 47 USD1 tokens to likely WLFI participants
Security Remains Critical
May 2025 saw 302 million USDT lost to cyber attacks, 229 million USDT from code vulnerabilities (+4,483% vs April), 47.6 million USDT from phishing. Social engineering remains the biggest threat.
Source | Certik
CZ proposed a privacy-focused perpetual DEX using Zero-Knowledge encryption to prevent MEV attacks and front-running, addressing current DEX limitations.
Looking Forward
Several themes emerge from this week’s chaos. Political drama creates short-term volatility but doesn’t stop institutional adoption. Regulatory clarity in friendly jurisdictions attracts major capital. Crypto infrastructure matures with real usage growth.
The key insight: crypto markets now move with traditional economic and political events, but the underlying infrastructure keeps building regardless of headline noise.
What to Watch:
- US-China trade talk developments
- Trump-Musk relationship updates
- Continued institutional buying despite political uncertainty
- US monetary policy; sudden change
- European monetary policy divergence from US
This analysis is for educational purposes only and does not constitute financial advice. Always DYOR (Do Your Own Research) and consider your risk tolerance. For more market insights, visit blog.millionero.com. When you’re ready to trade, you can access spot and perpetual contracts on millionero.