Bitcoin’s ability to hold above $105,000 despite Trump-Musk tensions demonstrates its evolving market dynamics. Unlike traditional safe havens, BTC now reacts to both macroeconomic signals and crypto-specific events. The rebound suggests institutional investors view political risks as transient compared to structural adoption trends.
The stability partly reflects Bitcoin ETF inflows creating stronger support levels. With over $50 billion in ETF assets, price dips attract rapid institutional buying. Additionally, looming Fed rate cut expectations provide macroeconomic tailwinds offsetting political noise.
This resilience reinforces Bitcoin’s narrative as ‘digital gold’ with uncorrelated returns. However, sustained political attacks on crypto industry leaders could eventually impact regulatory landscapes. Markets currently price this as low-probability risk given bipartisan legislative progress.
