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Crypto Week: DeFi Day, Musk Apologizes, U.S.-China Trade Agreement

Bitcoin (BTC) rose by 3.0% to $109,564 this week, returning to the resistance zone of $108,000–110,000 and now facing a key turning point. It could either pull back to the $103,000–105,000 area or attempt a breakout to new all-time highs. All of the gains occurred on Monday, with prices peaking at $110,642 — just shy of the record $111,955.

The rally is being linked to unexpected comments from SEC Chair Paul Atkins, who instructed staff to explore regulatory exemptions for DeFi projects. This marked a stark shift from the SEC’s prior stance under Gary Gensler, who had been notably strict toward the crypto industry. Binance founder Changpeng Zhao hailed the news, calling June 9 “DeFi Day.”

Elon Musk also returned to the spotlight, voicing support for former President Donald Trump in a dispute with California’s governor. Musk acknowledged his earlier criticisms of Trump were misplaced. Just days before, a public spat between the two triggered a 4.0% drop in BTC to $100,309.

Meanwhile, the U.S. and China appear to have reached a preliminary trade agreement during talks in London. The framework now awaits final sign-off from Trump and Xi Jinping. If approved, it could ease trade tensions and further support market sentiment.

Despite Bitcoin trading near record highs, investor caution remains. Last week, spot Bitcoin ETFs (IBIT, FBTC, GBTC) saw outflows of $474.0 million, following $667.2 million in the prior week. Another $130.4 million in net outflows were recorded this week, but given the strong inflows over the past two months, this is seen as a temporary adjustment. Large investors seem to be holding their positions, while retail investors have grown wary after recent volatility.

These conditions suggest a strong setup for BTC to continue higher. While a pullback to $103,000–105,000 is still possible — especially if U.S. inflation spikes or other macro risks emerge — such a drop may be the last major buying opportunity before BTC advances toward $150,000–170,000 in the medium term.

The Senate is expected to approve the GENIUS stablecoin bill this week. It follows Circle’s IPO — the issuer of USDC — which underscores the need for regulatory clarity. SEC Chair Atkins has also indicated that DeFi regulation is next in line.

This creates a constructive backdrop for crypto markets, but whether it will be enough for BTC to break through $110,000 is still uncertain. A successful breakout could trigger acceleration toward the next target at $117,000–127,000. Failure to break out would likely lead to one final correction toward support at $98,000–100,000 before the rally resumes.