{"id":852817,"date":"2025-06-02T09:12:03","date_gmt":"2025-06-02T14:12:03","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/02\/why-is-bitcoin-going-down-elon-musk-news-didnt-help-btc-price-analysts-predict-drop-to-97k\/"},"modified":"2025-06-02T09:12:03","modified_gmt":"2025-06-02T14:12:03","slug":"why-is-bitcoin-going-down-elon-musk-news-didnt-help-btc-price-analysts-predict-drop-to-97k","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/06\/02\/why-is-bitcoin-going-down-elon-musk-news-didnt-help-btc-price-analysts-predict-drop-to-97k\/","title":{"rendered":"Why Is Bitcoin Going Down? Elon Musk News Didn\u2019t Help BTC Price, Analysts Predict Drop to $97K"},"content":{"rendered":"<div data-v-82c469b6>\n<p data-v-82c469b6>Bitcoin (<a href=\"https:\/\/www.financemagnates.com\/tag\/bitcoin-news\/\" target=\"_self\" data-v-82c469b6>BTC<\/a>) price action<br \/>\nhas entered a critical juncture as June 2025 unfolds, with the<br \/>\nworld&#8217;s largest cryptocurrency trading on Monday, 2 June, 2025, around $104,823<br \/>\nafter retreating from recent highs near $112,000. The current market dynamics<br \/>\npresent both opportunities and risks for retail traders, as technical patterns<br \/>\nsuggest potential volatility ahead while institutional sentiment remains<br \/>\ncautiously optimistic.<\/p>\n<p data-v-82c469b6>Moreover, <a href=\"https:\/\/www.financemagnates.com\/tag\/elon-musk\/\" target=\"_self\" data-v-82c469b6>Elon Musk&#8217;s<\/a> latest<br \/>\nventure into cryptocurrency-adjacent technology has once again captured market<br \/>\nattention, though this time with less fanfare than his previous Bitcoin-related<br \/>\nannouncements<\/p>\n<h2 data-v-82c469b6>Elon Musk Bitcoin News:<br \/>\nXChat Launch Fails to Impress Markets<\/h2>\n<p data-v-82c469b6>In the<br \/>\nlatest Elon Musk development affecting crypto markets, the tech<br \/>\nbillionaire announced the launch of XChat, a new messaging app featuring what<br \/>\nhe calls &#8220;Bitcoin-style encryption.&#8221; However, this Bitcoin news has<br \/>\nfailed to generate positive market momentum, with experts questioning the<br \/>\ntechnical claims behind the offering.<\/p>\n<blockquote data-v-82c469b6>\n<div lang=\"en\" dir=\"ltr\" data-v-82c469b6>\n<p>All new XChat is rolling out with encryption, vanishing messages and the ability to send any kind of file. Also, audio\/video calling. <\/p>\n<p>This is built on Rust with (Bitcoin style) encryption, whole new architecture.<\/p>\n<\/div>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1929238157872312773?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-v-82c469b6>June 1, 2025<\/a><\/p><\/blockquote>\n<p data-v-82c469b6>\u201cAll new<br \/>\nXChat is rolling out with encryption, vanishing messages and the ability to<br \/>\nsend any kind of file. Also, audio\/video calling,\u201d said Musk.<\/p>\n<p data-v-82c469b6>Elon Musk&#8217;s XChat<br \/>\nannouncement has drawn criticism from cybersecurity professionals who point out<br \/>\nthat Bitcoin primarily uses digital signatures rather than encryption. Ian<br \/>\nMiers, Assistant Professor of Computer Science at the University of Maryland,<br \/>\nnoted that &#8220;Bitcoin primarily uses signatures, not encryption,&#8221;<br \/>\nhighlighting the confusion in Musk&#8217;s <span tabindex=\"-1\" data-ref=\"term-wrapper\" data-v-26a4c466 data-v-82c469b6><span data-v-26a4c466><span data-v-26a4c466>marketing<span><\/span><\/span><\/span> <\/span> approach.<\/p>\n<blockquote data-v-82c469b6>\n<p lang=\"en\" dir=\"ltr\" data-v-82c469b6>Needless to say &#8220;Bitcoin style&#8221; and &#8220;Rust&#8221; 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&#8217;t just in Rust.<\/p>\n<p>\u2014 Ian Miers (@secparam) <a href=\"https:\/\/twitter.com\/secparam\/status\/1929315601949790362?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-v-82c469b6>June 1, 2025<\/a><\/p><\/blockquote>\n<p data-v-82c469b6>The Bitcoin<br \/>\nprice remained relatively stable near $105,000 following the XChat<br \/>\nannouncement, suggesting that Elon Musk&#8217;s influence on crypto markets<br \/>\nmay be waning compared to previous years when his tweets could trigger<br \/>\nsignificant price movements.<\/p>\n<figure data-media-id=\"82473d2a-9054-41d4-a59f-14d79850fb44\" data-v-82c469b6><figcaption data-v-82c469b6>\n<p>Bitcoin price today. Source: CoinMarketCap<\/p>\n<\/figcaption><\/figure>\n<h2 data-v-82c469b6>Current Bitcoin Price<br \/>\nAction Today: Bear Flag Formation Signals Caution<\/h2>\n<p data-v-82c469b6>According<br \/>\nto my technical analysis, the Bitcoin price has formed a textbook<br \/>\nbear flag pattern on the four-hour chart, creating concerns about potential<br \/>\ndownside movement. This bearish continuation pattern emerged after BTC<br \/>\nbottomed at approximately $103,100 on May 31, with the cryptocurrency<br \/>\nconsolidating in an upward parallel channel following the sharp decline from<br \/>\nits $111,814 all-time high reached on May 22.<\/p>\n<p data-v-82c469b6>The bear<br \/>\nflag pattern projects a potential Bitcoin price target of $97,709<br \/>\nif the support at $105,000 fails to hold. This technical setup should be<br \/>\nclosely monitored with the psychological support levels, particularly the $100,000<br \/>\nmark and the yearly opening around $92,000.<\/p>\n<figure data-media-id=\"d8b75003-efd6-4488-aac0-7c15dc17782c\" data-v-82c469b6><figcaption data-v-82c469b6>\n<p>Bitcoin technical analysis. Source: Tradingview.com<\/p>\n<\/figcaption><\/figure>\n<p data-v-82c469b6><strong data-v-82c469b6>Key<br \/>\nresistance and support levels to watch:<\/strong><\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>Immediate<br \/>\n     resistance:<\/strong> $108,000 &#8211; $112,000<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Critical<br \/>\n     support:<\/strong> $103,000 &#8211; $105,000<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Major support:<\/strong> $97,600 (200-day moving<br \/>\n     average)<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Bearish target:<\/strong> $85,000 in worst-case<br \/>\n     scenario<\/li>\n<\/ul>\n<h2 data-v-82c469b6>Expert Debunks Musk&#8217;s<br \/>\nXChat Encryption Claims and Bitcoin News<\/h2>\n<figure data-media-id=\"55df1e14-d8c0-4ed4-bf25-c1f13de0506e\" data-v-82c469b6><figcaption data-v-82c469b6>\n<p>Aran Hawker, the CEO at CoinPanel<\/p>\n<\/figcaption><\/figure>\n<p data-v-82c469b6>Aran Hawker, CEO of CoinPanel, provided a comprehensive analysis of Elon Musk&#8217;s XChat<br \/>\nannouncement for FinanceMagnates.com, offering crucial insights for traders<br \/>\ntrying to understand the implications for Bitcoin price action.<\/p>\n<p data-v-82c469b6>&#8220;I see<br \/>\nno direct link between Elon Musk&#8217;s announcement of X-Chat and Bitcoin itself,<br \/>\nexcept for his mention of &#8216;Bitcoin style encryption,&#8217; which is extremely vague<br \/>\nand lacks technical detail,&#8221; Hawker explains. His analysis reveals<br \/>\nthree critical points that retail traders should consider:<\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>Impact<br \/>\non Bitcoin&#8217;s Future<\/strong>:<br \/>\nHawker suggests the announcement will have minimal effect on Bitcoin<br \/>\nadoption or price, noting that Musk&#8217;s reference to &#8220;Bitcoin style<br \/>\nencryption&#8221; is likely just shorthand for cryptographic principles that<br \/>\nBitcoin popularized but are now widely adopted across the software industry.<br \/>\nThere&#8217;s no indication that XChat will integrate with Bitcoin&#8217;s infrastructure<br \/>\nfor payments or settlements.<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Layer 1<br \/>\nand Layer 2 Considerations<\/strong>: The expert dismisses the possibility of Musk utilizing Bitcoin&#8217;s<br \/>\nexisting infrastructure, explaining that &#8220;Bitcoin Layer 1 is designed for<br \/>\nsecure, decentralized transactions and is not optimized for real-time<br \/>\nmessaging.&#8221; Even Layer 2 solutions like Lightning Network remain focused<br \/>\non payments rather than messaging applications.<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Competitive<br \/>\nThreat Assessment<\/strong>:<br \/>\nHawker concludes that XChat poses no serious threat to Bitcoin price or<br \/>\nadoption, stating that &#8220;Bitcoin&#8217;s primary use case as a decentralized,<br \/>\ncensorship-resistant monetary network remains unmatched by any social<br \/>\nmedia-native tokens.&#8221; Instead, he suggests the development might challenge<br \/>\nsmaller tokens like TON in Telegram rather than Bitcoin itself.<\/li>\n<\/ul>\n<h2 data-v-82c469b6>AI Models Bitcoin Price<br \/>\nPredictions Show Recovery Despite Short-Term Weakness<\/h2>\n<p data-v-82c469b6>Despite the<br \/>\ncurrent bearish technical setup, artificial intelligence models remain<br \/>\noptimistic about Bitcoin price prospects for the remainder of June<br \/>\n2025. ChatGPT&#8217;s analysis suggests a base-case prediction of $118,000 by June<br \/>\n30, highlighting Bitcoin&#8217;s resilience and the possibility of renewed bullish<br \/>\nsentiment.<\/p>\n<p data-v-82c469b6>The AI<br \/>\nmodel estimates a 65% probability that <span tabindex=\"-1\" data-ref=\"term-wrapper\" data-v-26a4c466 data-v-82c469b6><span data-v-26a4c466><span data-v-26a4c466>Bitcoin<span><\/span><\/span><\/span> <\/span> will finish June above<br \/>\n$110,000, though breaking $130,000 would require a major bullish catalyst.<br \/>\nMeanwhile, xAI&#8217;s Grok offers a more conservative outlook, predicting Bitcoin<br \/>\nwill trade around $108,000 by month-end, assuming continued institutional<br \/>\ninflows and favorable regulatory developments.<\/p>\n<p data-v-82c469b6><strong data-v-82c469b6>Multiple<br \/>\nprice prediction models show varying scenarios:<\/strong><\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>Changelly forecast:<\/strong> Peak at $137,189 by June<br \/>\n     7, with support at $104,329<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>LongForecast projection:<\/strong> Range between $115,561<br \/>\n     and $132,957 for June<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>CoinDCX analysis:<\/strong> Potential test of<br \/>\n     $114,000-$116,000 mid-June if bulls maintain control<\/li>\n<\/ul>\n<h3 data-v-82c469b6>Bitcoin Price Prediction Table<\/h3>\n<table data-v-82c469b6 readabilityDataTable=\"1\">\n<tbody data-v-82c469b6>\n<tr data-v-82c469b6>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>Forecast Source<\/strong><\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>End of 2025 Target<\/strong><\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>Long-Term Target<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr data-v-82c469b6>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>Standard Chartered<\/strong> (Geoff<br \/>\n  Kendrick)<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6><em data-v-82c469b6>$120,000<\/em> by Q2 2025; <strong data-v-82c469b6>$200,000<\/strong> by end of 2025<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>$500,000<\/strong> by 2028<br \/>\n  (multi-year path)<\/p>\n<\/td>\n<\/tr>\n<tr data-v-82c469b6>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>VanEck<\/strong> (Matthew<br \/>\n  Sigel)<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6>Peak around <strong data-v-82c469b6>$180,000<\/strong> in 2025 (dual-cycle peak scenario)<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6>No official 2030 target (expects new<br \/>\n  highs beyond 2025; e.g. next cycle >$400K)<\/p>\n<\/td>\n<\/tr>\n<tr data-v-82c469b6>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>ARK Invest<\/strong> (<a href=\"https:\/\/www.financemagnates.com\/cryptocurrency\/will-bitcoin-hit-1-million-btc-price-prediction-for-2025\/\" target=\"_self\" data-v-82c469b6>Cathie<br \/>\n  Wood<\/a>)<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6>(Short-term not specified; bullish<br \/>\n  trajectory)<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>$1.2 million<\/strong> base case by 2030; <strong data-v-82c469b6>$2.4<br \/>\n  million<\/strong> bull case; bear case ~$500K<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 data-v-82c469b6>Why Is Bitcoin Going Down?<br \/>\nTrade Tensions and Market Dynamics<\/h2>\n<p data-v-82c469b6>The<br \/>\nrecent Bitcoin price decline can be attributed to several<br \/>\ninterconnected factors affecting global risk sentiment. Rising US-China trade<br \/>\ntensions have prompted investors to move away from risk assets, including<br \/>\ncryptocurrencies, creating downward pressure on Bitcoin and other digital<br \/>\nassets.<\/p>\n<p data-v-82c469b6>I also<br \/>\ndiscussed <a href=\"https:\/\/www.financemagnates.com\/trending\/why-is-crypto-going-down-bitcoin-ethereum-xrp-dogecoin-prices-are-falling-today\/\" target=\"_self\" data-v-82c469b6>why<br \/>\nthe price of Bitcoin is falling in last week&#8217;s analysis<\/a>, which covered four<br \/>\nconsecutive days of broad market declines. In addition to Bitcoin, Ethereum,<br \/>\nDogecoin, and XRP also lost value.<\/p>\n<p data-v-82c469b6><strong data-v-82c469b6>Primary<br \/>\nfactors driving current weakness:<\/strong><\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>Geopolitical tensions:<\/strong> US-China trade<br \/>\n     negotiations creating uncertainty<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Technical resistance:<\/strong> Strong selling pressure<br \/>\n     near $112,000 level<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Profit-taking:<\/strong> Traders securing gains<br \/>\n     after May&#8217;s 11% rally<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Correlation with traditional<br \/>\n     markets:<\/strong> Increased<br \/>\n     sensitivity to macroeconomic conditions<\/li>\n<\/ul>\n<p data-v-82c469b6>The<br \/>\ncryptocurrency market&#8217;s correlation with traditional financial markets has<br \/>\nbecome more pronounced, with central bank decisions and labor market data<br \/>\nincreasingly driving crypto price movements. This shift represents a<br \/>\nsignificant change from Bitcoin&#8217;s earlier days when it traded more<br \/>\nindependently of traditional asset classes.<\/p>\n<h2 data-v-82c469b6>Bitcoin Trading Strategy<br \/>\nand Risk Management for Retail Traders<\/h2>\n<p data-v-82c469b6>Given the<br \/>\ncurrent market dynamics, retail traders should focus on risk management rather<br \/>\nthan aggressive positioning. The formation of the bear flag pattern suggests<br \/>\nwaiting for clear directional signals before entering new positions,<br \/>\nparticularly around the critical $104,800 support level.<\/p>\n<p data-v-82c469b6><strong data-v-82c469b6>Recommended<br \/>\napproach for retail traders:<\/strong><\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>Monitor key levels:<\/strong> Watch for breaks above<br \/>\n     $108,000 or below $103,000<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Volume confirmation:<\/strong> Look for increased<br \/>\n     trading volume to confirm breakouts<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Risk management:<\/strong> Use stop-losses and<br \/>\n     position sizing appropriate for volatility<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Patience:<\/strong> Avoid FOMO trading during<br \/>\n     uncertain market conditions<\/li>\n<\/ul>\n<p data-v-82c469b6>The Bitcoin<br \/>\nprice outlook for June 2025 hinges on whether bulls can defend the<br \/>\n$105,000 level and rebuild momentum toward new highs. While short-term<br \/>\ntechnical indicators suggest caution, the longer-term institutional adoption<br \/>\nnarrative remains intact, providing a foundation for future growth.<\/p>\n<p data-v-82c469b6>As we<br \/>\nnavigate this critical period, retail traders should remain informed about both<br \/>\ntechnical developments and fundamental factors affecting the cryptocurrency<br \/>\nmarket. The intersection of traditional finance and digital assets continues to<br \/>\nevolve, creating both opportunities and challenges for those willing to adapt<br \/>\ntheir strategies accordingly.<\/p>\n<h2 data-v-82c469b6>Bitcoin News, FAQ<\/h2>\n<h3 data-v-82c469b6>Is Bitcoin Going to Rise<br \/>\nAgain?<\/h3>\n<p data-v-82c469b6>Yes,<br \/>\nBitcoin is expected to rise again based on multiple institutional forecasts and<br \/>\nhistorical patterns. The cryptocurrency market has demonstrated remarkable<br \/>\nresilience through previous crashes in 2013, 2018, and 2022, each time emerging<br \/>\nstronger and more mature<a href=\"https:\/\/www.financemagnates.com\/trending\/why-is-crypto-going-down-bitcoin-ethereum-xrp-dogecoin-prices-are-falling-today\/\" target=\"_self\" data-v-82c469b6>3<\/a>. Several factors support a<br \/>\nrecovery outlook for 2025, including rising institutional demand, favorable<br \/>\npost-halving supply dynamics, and robust on-chain fundamentals indicating<br \/>\nlong-term holders are in control.<\/p>\n<h3 data-v-82c469b6>What If You Put $1000 in<br \/>\nBitcoin 5 Years Ago?<\/h3>\n<p data-v-82c469b6>A $1,000<br \/>\ninvestment in Bitcoin made 5 years ago (2019) would have grown to approximately<br \/>\n$8,402 based on October 2024 pricing data. This represents a remarkable<br \/>\n740% return on investment, demonstrating Bitcoin&#8217;s potential for long-term<br \/>\nwealth creation despite short-term volatility.<\/p>\n<p data-v-82c469b6>For<br \/>\nperspective on Bitcoin&#8217;s historical performance:<\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>1 year ago (2023):<\/strong> $1,000 would be worth<br \/>\n     approximately $2,370<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>10 years ago (2014):<\/strong> $1,000 would now be<br \/>\n     valued at $176,994<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>15 years ago (2009):<\/strong> $1,000 invested at<br \/>\n     Bitcoin&#8217;s inception would be worth an astounding $68.3 billion<\/li>\n<\/ul>\n<h3 data-v-82c469b6>Why Has Bitcoin Dropped<br \/>\nToday?<\/h3>\n<p data-v-82c469b6>Bitcoin<br \/>\ndropped today primarily due to stalled US-China trade talks, which created<br \/>\nmacroeconomic uncertainty and triggered risk-off sentiment among investors. US Treasury Secretary Scott<br \/>\nBessent&#8217;s confirmation that trade negotiations with China have stalled dampened<br \/>\ninvestor sentiment across global markets.<\/p>\n<p data-v-82c469b6>Additional<br \/>\nfactors contributing to today&#8217;s decline include massive liquidations totaling<br \/>\nover $683.4 million in crypto futures within 24 hours, with long positions<br \/>\naccounting for $617.85 million of these liquidations. The technical<br \/>\nbreakdown occurred as the total crypto market cap broke below the critical<br \/>\n$3.35 trillion support level, triggering algorithmic selling and stop-loss<br \/>\norders.<\/p>\n<h3 data-v-82c469b6>Who Owns 90% of Bitcoin?<\/h3>\n<p data-v-82c469b6>No single<br \/>\nentity owns 90% of Bitcoin. The largest individual holder is Satoshi Nakamoto,<br \/>\nBitcoin&#8217;s anonymous creator, who owns an estimated 968,452 BTC (approximately<br \/>\n4.6% of total supply). These bitcoins are spread across approximately<br \/>\n20,000 addresses and have remained untouched since Satoshi left the project in<br \/>\n2010.<\/p>\n<p data-v-82c469b6>The largest<br \/>\ninstitutional holder is MicroStrategy, which has acquired 568,840 BTC,<br \/>\nrepresenting roughly 2.7% of the total supply.<\/p>\n<\/div>\n<div data-v-82c469b6>\n<p data-v-82c469b6>Bitcoin (<a href=\"https:\/\/www.financemagnates.com\/tag\/bitcoin-news\/\" target=\"_self\" data-v-82c469b6>BTC<\/a>) price action<br \/>\nhas entered a critical juncture as June 2025 unfolds, with the<br \/>\nworld&#8217;s largest cryptocurrency trading on Monday, 2 June, 2025, around $104,823<br \/>\nafter retreating from recent highs near $112,000. The current market dynamics<br \/>\npresent both opportunities and risks for retail traders, as technical patterns<br \/>\nsuggest potential volatility ahead while institutional sentiment remains<br \/>\ncautiously optimistic.<\/p>\n<p data-v-82c469b6>Moreover, <a href=\"https:\/\/www.financemagnates.com\/tag\/elon-musk\/\" target=\"_self\" data-v-82c469b6>Elon Musk&#8217;s<\/a> latest<br \/>\nventure into cryptocurrency-adjacent technology has once again captured market<br \/>\nattention, though this time with less fanfare than his previous Bitcoin-related<br \/>\nannouncements<\/p>\n<h2 data-v-82c469b6>Elon Musk Bitcoin News:<br \/>\nXChat Launch Fails to Impress Markets<\/h2>\n<p data-v-82c469b6>In the<br \/>\nlatest Elon Musk development affecting crypto markets, the tech<br \/>\nbillionaire announced the launch of XChat, a new messaging app featuring what<br \/>\nhe calls &#8220;Bitcoin-style encryption.&#8221; However, this Bitcoin news has<br \/>\nfailed to generate positive market momentum, with experts questioning the<br \/>\ntechnical claims behind the offering.<\/p>\n<blockquote data-v-82c469b6>\n<div lang=\"en\" dir=\"ltr\" data-v-82c469b6>\n<p>All new XChat is rolling out with encryption, vanishing messages and the ability to send any kind of file. Also, audio\/video calling. <\/p>\n<p>This is built on Rust with (Bitcoin style) encryption, whole new architecture.<\/p>\n<\/div>\n<p>\u2014 Elon Musk (@elonmusk) <a href=\"https:\/\/twitter.com\/elonmusk\/status\/1929238157872312773?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-v-82c469b6>June 1, 2025<\/a><\/p><\/blockquote>\n<p data-v-82c469b6>\u201cAll new<br \/>\nXChat is rolling out with encryption, vanishing messages and the ability to<br \/>\nsend any kind of file. Also, audio\/video calling,\u201d said Musk.<\/p>\n<p data-v-82c469b6>Elon Musk&#8217;s XChat<br \/>\nannouncement has drawn criticism from cybersecurity professionals who point out<br \/>\nthat Bitcoin primarily uses digital signatures rather than encryption. Ian<br \/>\nMiers, Assistant Professor of Computer Science at the University of Maryland,<br \/>\nnoted that &#8220;Bitcoin primarily uses signatures, not encryption,&#8221;<br \/>\nhighlighting the confusion in Musk&#8217;s <span tabindex=\"-1\" data-ref=\"term-wrapper\" data-v-26a4c466 data-v-82c469b6><span data-v-26a4c466><span data-v-26a4c466>marketing<span><\/span><\/span><\/span> <\/span> approach.<\/p>\n<blockquote data-v-82c469b6>\n<p lang=\"en\" dir=\"ltr\" data-v-82c469b6>Needless to say &#8220;Bitcoin style&#8221; and &#8220;Rust&#8221; 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&#8217;t just in Rust.<\/p>\n<p>\u2014 Ian Miers (@secparam) <a href=\"https:\/\/twitter.com\/secparam\/status\/1929315601949790362?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-v-82c469b6>June 1, 2025<\/a><\/p><\/blockquote>\n<p data-v-82c469b6>The Bitcoin<br \/>\nprice remained relatively stable near $105,000 following the XChat<br \/>\nannouncement, suggesting that Elon Musk&#8217;s influence on crypto markets<br \/>\nmay be waning compared to previous years when his tweets could trigger<br \/>\nsignificant price movements.<\/p>\n<figure data-media-id=\"82473d2a-9054-41d4-a59f-14d79850fb44\" data-v-82c469b6><figcaption data-v-82c469b6>\n<p>Bitcoin price today. Source: CoinMarketCap<\/p>\n<\/figcaption><\/figure>\n<h2 data-v-82c469b6>Current Bitcoin Price<br \/>\nAction Today: Bear Flag Formation Signals Caution<\/h2>\n<p data-v-82c469b6>According<br \/>\nto my technical analysis, the Bitcoin price has formed a textbook<br \/>\nbear flag pattern on the four-hour chart, creating concerns about potential<br \/>\ndownside movement. This bearish continuation pattern emerged after BTC<br \/>\nbottomed at approximately $103,100 on May 31, with the cryptocurrency<br \/>\nconsolidating in an upward parallel channel following the sharp decline from<br \/>\nits $111,814 all-time high reached on May 22.<\/p>\n<p data-v-82c469b6>The bear<br \/>\nflag pattern projects a potential Bitcoin price target of $97,709<br \/>\nif the support at $105,000 fails to hold. This technical setup should be<br \/>\nclosely monitored with the psychological support levels, particularly the $100,000<br \/>\nmark and the yearly opening around $92,000.<\/p>\n<figure data-media-id=\"d8b75003-efd6-4488-aac0-7c15dc17782c\" data-v-82c469b6><figcaption data-v-82c469b6>\n<p>Bitcoin technical analysis. Source: Tradingview.com<\/p>\n<\/figcaption><\/figure>\n<p data-v-82c469b6><strong data-v-82c469b6>Key<br \/>\nresistance and support levels to watch:<\/strong><\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>Immediate<br \/>\n     resistance:<\/strong> $108,000 &#8211; $112,000<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Critical<br \/>\n     support:<\/strong> $103,000 &#8211; $105,000<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Major support:<\/strong> $97,600 (200-day moving<br \/>\n     average)<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Bearish target:<\/strong> $85,000 in worst-case<br \/>\n     scenario<\/li>\n<\/ul>\n<h2 data-v-82c469b6>Expert Debunks Musk&#8217;s<br \/>\nXChat Encryption Claims and Bitcoin News<\/h2>\n<figure data-media-id=\"55df1e14-d8c0-4ed4-bf25-c1f13de0506e\" data-v-82c469b6><figcaption data-v-82c469b6>\n<p>Aran Hawker, the CEO at CoinPanel<\/p>\n<\/figcaption><\/figure>\n<p data-v-82c469b6>Aran Hawker, CEO of CoinPanel, provided a comprehensive analysis of Elon Musk&#8217;s XChat<br \/>\nannouncement for FinanceMagnates.com, offering crucial insights for traders<br \/>\ntrying to understand the implications for Bitcoin price action.<\/p>\n<p data-v-82c469b6>&#8220;I see<br \/>\nno direct link between Elon Musk&#8217;s announcement of X-Chat and Bitcoin itself,<br \/>\nexcept for his mention of &#8216;Bitcoin style encryption,&#8217; which is extremely vague<br \/>\nand lacks technical detail,&#8221; Hawker explains. His analysis reveals<br \/>\nthree critical points that retail traders should consider:<\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>Impact<br \/>\non Bitcoin&#8217;s Future<\/strong>:<br \/>\nHawker suggests the announcement will have minimal effect on Bitcoin<br \/>\nadoption or price, noting that Musk&#8217;s reference to &#8220;Bitcoin style<br \/>\nencryption&#8221; is likely just shorthand for cryptographic principles that<br \/>\nBitcoin popularized but are now widely adopted across the software industry.<br \/>\nThere&#8217;s no indication that XChat will integrate with Bitcoin&#8217;s infrastructure<br \/>\nfor payments or settlements.<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Layer 1<br \/>\nand Layer 2 Considerations<\/strong>: The expert dismisses the possibility of Musk utilizing Bitcoin&#8217;s<br \/>\nexisting infrastructure, explaining that &#8220;Bitcoin Layer 1 is designed for<br \/>\nsecure, decentralized transactions and is not optimized for real-time<br \/>\nmessaging.&#8221; Even Layer 2 solutions like Lightning Network remain focused<br \/>\non payments rather than messaging applications.<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Competitive<br \/>\nThreat Assessment<\/strong>:<br \/>\nHawker concludes that XChat poses no serious threat to Bitcoin price or<br \/>\nadoption, stating that &#8220;Bitcoin&#8217;s primary use case as a decentralized,<br \/>\ncensorship-resistant monetary network remains unmatched by any social<br \/>\nmedia-native tokens.&#8221; Instead, he suggests the development might challenge<br \/>\nsmaller tokens like TON in Telegram rather than Bitcoin itself.<\/li>\n<\/ul>\n<h2 data-v-82c469b6>AI Models Bitcoin Price<br \/>\nPredictions Show Recovery Despite Short-Term Weakness<\/h2>\n<p data-v-82c469b6>Despite the<br \/>\ncurrent bearish technical setup, artificial intelligence models remain<br \/>\noptimistic about Bitcoin price prospects for the remainder of June<br \/>\n2025. ChatGPT&#8217;s analysis suggests a base-case prediction of $118,000 by June<br \/>\n30, highlighting Bitcoin&#8217;s resilience and the possibility of renewed bullish<br \/>\nsentiment.<\/p>\n<p data-v-82c469b6>The AI<br \/>\nmodel estimates a 65% probability that <span tabindex=\"-1\" data-ref=\"term-wrapper\" data-v-26a4c466 data-v-82c469b6><span data-v-26a4c466><span data-v-26a4c466>Bitcoin<span><\/span><\/span><\/span> <\/span> will finish June above<br \/>\n$110,000, though breaking $130,000 would require a major bullish catalyst.<br \/>\nMeanwhile, xAI&#8217;s Grok offers a more conservative outlook, predicting Bitcoin<br \/>\nwill trade around $108,000 by month-end, assuming continued institutional<br \/>\ninflows and favorable regulatory developments.<\/p>\n<p data-v-82c469b6><strong data-v-82c469b6>Multiple<br \/>\nprice prediction models show varying scenarios:<\/strong><\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>Changelly forecast:<\/strong> Peak at $137,189 by June<br \/>\n     7, with support at $104,329<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>LongForecast projection:<\/strong> Range between $115,561<br \/>\n     and $132,957 for June<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>CoinDCX analysis:<\/strong> Potential test of<br \/>\n     $114,000-$116,000 mid-June if bulls maintain control<\/li>\n<\/ul>\n<h3 data-v-82c469b6>Bitcoin Price Prediction Table<\/h3>\n<table data-v-82c469b6 readabilityDataTable=\"1\">\n<tbody data-v-82c469b6>\n<tr data-v-82c469b6>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>Forecast Source<\/strong><\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>End of 2025 Target<\/strong><\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>Long-Term Target<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr data-v-82c469b6>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>Standard Chartered<\/strong> (Geoff<br \/>\n  Kendrick)<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6><em data-v-82c469b6>$120,000<\/em> by Q2 2025; <strong data-v-82c469b6>$200,000<\/strong> by end of 2025<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>$500,000<\/strong> by 2028<br \/>\n  (multi-year path)<\/p>\n<\/td>\n<\/tr>\n<tr data-v-82c469b6>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>VanEck<\/strong> (Matthew<br \/>\n  Sigel)<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6>Peak around <strong data-v-82c469b6>$180,000<\/strong> in 2025 (dual-cycle peak scenario)<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6>No official 2030 target (expects new<br \/>\n  highs beyond 2025; e.g. next cycle >$400K)<\/p>\n<\/td>\n<\/tr>\n<tr data-v-82c469b6>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>ARK Invest<\/strong> (<a href=\"https:\/\/www.financemagnates.com\/cryptocurrency\/will-bitcoin-hit-1-million-btc-price-prediction-for-2025\/\" target=\"_self\" data-v-82c469b6>Cathie<br \/>\n  Wood<\/a>)<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6>(Short-term not specified; bullish<br \/>\n  trajectory)<\/p>\n<\/td>\n<td data-v-82c469b6>\n<p data-v-82c469b6><strong data-v-82c469b6>$1.2 million<\/strong> base case by 2030; <strong data-v-82c469b6>$2.4<br \/>\n  million<\/strong> bull case; bear case ~$500K<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2 data-v-82c469b6>Why Is Bitcoin Going Down?<br \/>\nTrade Tensions and Market Dynamics<\/h2>\n<p data-v-82c469b6>The<br \/>\nrecent Bitcoin price decline can be attributed to several<br \/>\ninterconnected factors affecting global risk sentiment. Rising US-China trade<br \/>\ntensions have prompted investors to move away from risk assets, including<br \/>\ncryptocurrencies, creating downward pressure on Bitcoin and other digital<br \/>\nassets.<\/p>\n<p data-v-82c469b6>I also<br \/>\ndiscussed <a href=\"https:\/\/www.financemagnates.com\/trending\/why-is-crypto-going-down-bitcoin-ethereum-xrp-dogecoin-prices-are-falling-today\/\" target=\"_self\" data-v-82c469b6>why<br \/>\nthe price of Bitcoin is falling in last week&#8217;s analysis<\/a>, which covered four<br \/>\nconsecutive days of broad market declines. In addition to Bitcoin, Ethereum,<br \/>\nDogecoin, and XRP also lost value.<\/p>\n<p data-v-82c469b6><strong data-v-82c469b6>Primary<br \/>\nfactors driving current weakness:<\/strong><\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>Geopolitical tensions:<\/strong> US-China trade<br \/>\n     negotiations creating uncertainty<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Technical resistance:<\/strong> Strong selling pressure<br \/>\n     near $112,000 level<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Profit-taking:<\/strong> Traders securing gains<br \/>\n     after May&#8217;s 11% rally<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Correlation with traditional<br \/>\n     markets:<\/strong> Increased<br \/>\n     sensitivity to macroeconomic conditions<\/li>\n<\/ul>\n<p data-v-82c469b6>The<br \/>\ncryptocurrency market&#8217;s correlation with traditional financial markets has<br \/>\nbecome more pronounced, with central bank decisions and labor market data<br \/>\nincreasingly driving crypto price movements. This shift represents a<br \/>\nsignificant change from Bitcoin&#8217;s earlier days when it traded more<br \/>\nindependently of traditional asset classes.<\/p>\n<h2 data-v-82c469b6>Bitcoin Trading Strategy<br \/>\nand Risk Management for Retail Traders<\/h2>\n<p data-v-82c469b6>Given the<br \/>\ncurrent market dynamics, retail traders should focus on risk management rather<br \/>\nthan aggressive positioning. The formation of the bear flag pattern suggests<br \/>\nwaiting for clear directional signals before entering new positions,<br \/>\nparticularly around the critical $104,800 support level.<\/p>\n<p data-v-82c469b6><strong data-v-82c469b6>Recommended<br \/>\napproach for retail traders:<\/strong><\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>Monitor key levels:<\/strong> Watch for breaks above<br \/>\n     $108,000 or below $103,000<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Volume confirmation:<\/strong> Look for increased<br \/>\n     trading volume to confirm breakouts<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Risk management:<\/strong> Use stop-losses and<br \/>\n     position sizing appropriate for volatility<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>Patience:<\/strong> Avoid FOMO trading during<br \/>\n     uncertain market conditions<\/li>\n<\/ul>\n<p data-v-82c469b6>The Bitcoin<br \/>\nprice outlook for June 2025 hinges on whether bulls can defend the<br \/>\n$105,000 level and rebuild momentum toward new highs. While short-term<br \/>\ntechnical indicators suggest caution, the longer-term institutional adoption<br \/>\nnarrative remains intact, providing a foundation for future growth.<\/p>\n<p data-v-82c469b6>As we<br \/>\nnavigate this critical period, retail traders should remain informed about both<br \/>\ntechnical developments and fundamental factors affecting the cryptocurrency<br \/>\nmarket. The intersection of traditional finance and digital assets continues to<br \/>\nevolve, creating both opportunities and challenges for those willing to adapt<br \/>\ntheir strategies accordingly.<\/p>\n<h2 data-v-82c469b6>Bitcoin News, FAQ<\/h2>\n<h3 data-v-82c469b6>Is Bitcoin Going to Rise<br \/>\nAgain?<\/h3>\n<p data-v-82c469b6>Yes,<br \/>\nBitcoin is expected to rise again based on multiple institutional forecasts and<br \/>\nhistorical patterns. The cryptocurrency market has demonstrated remarkable<br \/>\nresilience through previous crashes in 2013, 2018, and 2022, each time emerging<br \/>\nstronger and more mature<a href=\"https:\/\/www.financemagnates.com\/trending\/why-is-crypto-going-down-bitcoin-ethereum-xrp-dogecoin-prices-are-falling-today\/\" target=\"_self\" data-v-82c469b6>3<\/a>. Several factors support a<br \/>\nrecovery outlook for 2025, including rising institutional demand, favorable<br \/>\npost-halving supply dynamics, and robust on-chain fundamentals indicating<br \/>\nlong-term holders are in control.<\/p>\n<h3 data-v-82c469b6>What If You Put $1000 in<br \/>\nBitcoin 5 Years Ago?<\/h3>\n<p data-v-82c469b6>A $1,000<br \/>\ninvestment in Bitcoin made 5 years ago (2019) would have grown to approximately<br \/>\n$8,402 based on October 2024 pricing data. This represents a remarkable<br \/>\n740% return on investment, demonstrating Bitcoin&#8217;s potential for long-term<br \/>\nwealth creation despite short-term volatility.<\/p>\n<p data-v-82c469b6>For<br \/>\nperspective on Bitcoin&#8217;s historical performance:<\/p>\n<ul data-v-82c469b6>\n<li data-v-82c469b6><strong data-v-82c469b6>1 year ago (2023):<\/strong> $1,000 would be worth<br \/>\n     approximately $2,370<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>10 years ago (2014):<\/strong> $1,000 would now be<br \/>\n     valued at $176,994<\/li>\n<li data-v-82c469b6><strong data-v-82c469b6>15 years ago (2009):<\/strong> $1,000 invested at<br \/>\n     Bitcoin&#8217;s inception would be worth an astounding $68.3 billion<\/li>\n<\/ul>\n<h3 data-v-82c469b6>Why Has Bitcoin Dropped<br \/>\nToday?<\/h3>\n<p data-v-82c469b6>Bitcoin<br \/>\ndropped today primarily due to stalled US-China trade talks, which created<br \/>\nmacroeconomic uncertainty and triggered risk-off sentiment among investors. US Treasury Secretary Scott<br \/>\nBessent&#8217;s confirmation that trade negotiations with China have stalled dampened<br \/>\ninvestor sentiment across global markets.<\/p>\n<p data-v-82c469b6>Additional<br \/>\nfactors contributing to today&#8217;s decline include massive liquidations totaling<br \/>\nover $683.4 million in crypto futures within 24 hours, with long positions<br \/>\naccounting for $617.85 million of these liquidations. The technical<br \/>\nbreakdown occurred as the total crypto market cap broke below the critical<br \/>\n$3.35 trillion support level, triggering algorithmic selling and stop-loss<br \/>\norders.<\/p>\n<h3 data-v-82c469b6>Who Owns 90% of Bitcoin?<\/h3>\n<p data-v-82c469b6>No single<br \/>\nentity owns 90% of Bitcoin. The largest individual holder is Satoshi Nakamoto,<br \/>\nBitcoin&#8217;s anonymous creator, who owns an estimated 968,452 BTC (approximately<br \/>\n4.6% of total supply). These bitcoins are spread across approximately<br \/>\n20,000 addresses and have remained untouched since Satoshi left the project in<br \/>\n2010.<\/p>\n<p data-v-82c469b6>The largest<br \/>\ninstitutional holder is MicroStrategy, which has acquired 568,840 BTC,<br \/>\nrepresenting roughly 2.7% of the total supply.<\/p>\n<\/div>\n<p><a href=\"https:\/\/www.financemagnates.com\/trending\/why-is-bitcoin-going-down-elon-musk-news-didnt-help-btc-price-analysts-predict-drop-to-97k\/\" class=\"button purchase\" rel=\"nofollow noopener\" target=\"_blank\">Read More<\/a><br \/>\n Damian Chmiel<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) price action has entered a critical juncture as June 2025 unfolds, with the world&#8217;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<\/p>\n","protected":false},"author":1,"featured_media":852818,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[903,4041],"tags":[],"class_list":{"0":"post-852817","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-going","8":"category-bitcoin"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/852817","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=852817"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/852817\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/852818"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=852817"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=852817"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=852817"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}