Crypto Market Navigates Trump-Musk Feud, Select Tokens Defy Downtrend
A public spat between Donald Trump and Elon Musk sent ripples through the cryptocurrency market, impacting the price of Bitcoin and other digital assets. However, some tokens, including TRON, Conflux, OKB, SPX6900, and Ontology, bucked the trend, posting gains over the past week.
Despite the overall negative market sentiment, the cryptocurrency market capitalization has risen above $3.41 trillion, a 4.1% increase from its one-month low on June 6th. Bitcoin briefly tested support at $100,372 following Musk’s criticism of Trump’s spending bill. Since then, Bitcoin, altcoins, and the overall market cap have rebounded.
Five Cryptocurrencies Show Resilience
While Bitcoin gained slightly less than 2%, several tokens demonstrated independent strength. Sectors like Made in China tokens, native platform tokens, and social coins such as TRON have recovered, even as billions of dollars were wiped from the total crypto market capitalization. Major cryptocurrencies like Ethereum also experienced price declines during this period.
Market sentiment initially shifted from “neutral” to “fear” amid speculation about the consequences of the Trump-Musk disagreement. However, trader sentiment has slowly recovered, now registering between 62 and 64 on a scale of 0 to 100, indicating “greed.”
These five tokens have outperformed Bitcoin and other major cryptocurrencies in the last week, seemingly unaffected by the public dispute. TRON gained nearly 5%, Conflux added 7% to its value, OKB recovered almost 5%, Ontology saw gains of nearly 4%, and SPX6900 experienced a double-digit surge, climbing 30%.
These tokens represent diverse categories: Conflux and TRON are Made in China coins, OKB is a native platform token, Ontology is a decentralized identity token, and SPX6900 is an Ethereum-based coin.
Is the Crypto Recovery Sustainable?
As Bitcoin’s market dominance grows, the likelihood of an “altcoin season” diminishes. An altcoin season is defined as a period when 75% of the top 50 cryptocurrencies by market capitalization outperform Bitcoin over 90 days.
Typically, Bitcoin’s dominance stabilizes or declines, paving the way for capital rotation and increased gains in altcoins, as seen in previous crypto cycles. Current indicators suggest that it is not yet altcoin season, nor even Bitcoin season.
“Long-term U.S. bond yields have reached new highs due to poor auction results. This will drastically deteriorate risk appetite in the market, which is negative for risk assets, especially cryptocurrency markets. Bitcoin faces significant pressure at $106,500, with key support at $104,000-$103,500. If BTC loses the $103,500 support, the liquidation force reaches $1.33 billion.”
Analysts advise traders to “strictly control risk positions” and monitor capital flows into the U.S. Dollar before making decisions on cryptocurrency derivatives trades.
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