From Cointelegraph

June 6, 2025 11:20 AM:

Bitcoin surged to $105,000 on June 6 after hitting a four-week low. Speculation arose over coordinated market manipulation following reports of Trump and Xi Jinping discussing import tariffs. Factors contributing to the drop included recession fears, uncertainty over US Strategic Bitcoin Reserves, and concerns about custodians re-hypothecating assets.

A large position liquidation by a Hyperliquid whale near $104,000 triggered a drop to $100,430 on June 5. Trader James Wynn reportedly lost over $100 million in a week. The market experienced a “bull trap” as overconfident buyers expected an immediate rebound in Bitcoin’s price.

Economic recession risks and uncertainty over Bitcoin custody continue to concern traders. Weekly US unemployment claims rose to an eight-month high, while Fed Governor Kugler warned of downside risks from tariffs. Some custodians face speculation of engaging in re-hypothecation, using Bitcoin collateral multiple times.

Investor frustration mounts as major custodians remain under scrutiny despite audits. Questions persist over Bitcoin’s weakness despite institutional inflows from Strategy, GameStop, and others. Concerns over US Strategic Bitcoin Reserves and regulatory hurdles for ETF products contribute to market uncertainty. Traders remain cautious amidst ongoing economic concerns and lack of clarity on custodial practices.

Read more at Cointelegraph: Bitcoin’s drop toward $100K caught many traders offgaurd