The cryptocurrency market experienced a rollercoaster ride last week, with Bitcoin showing both resilience and vulnerability in response to global political and economic developments.
Bitcoin began the week on a strong footing, surpassing the $100,000 mark on Monday, hitting $102,760 before retreating to $92,941 by week’s end. Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro, highlighted the factors influencing the market. “The 4% price spike, which took Bitcoin above $100,000, followed the announcement that Canadian Prime Minister Justin Trudeau is stepping down. Pro-bitcoin opposition leader Pierre Poilievre is expected to lead his party to victory at the next election,” he explained.
Crypto stocks mirrored Bitcoin’s performance, with MicroStrategy (MSTR) seeing a 12% gain on Monday. However, the rally was short-lived as economic data from the United States cast a shadow over risk assets. Reports of higher-than-expected job openings and non-farm payrolls caused Bitcoin to drop by as much as 11%.
The shift in sentiment was further exacerbated by concerns over inflation and uncertainty surrounding the Federal Reserve’s interest rate trajectory. According to the CME FedWatch tool, investors have adjusted their expectations, now anticipating the first interest rate cut from the Fed in late September 2025, rather than earlier in the year.
Adding to the market’s unease, rising bond yields and a strengthening US dollar have placed further pressure on cryptocurrencies. Speaking from Mar-a-Lago, President-elect Donald Trump criticized current interest rate levels, describing them as “far too high.” Market participants are closely watching whether Trump’s administration might exert pressure on the Federal Reserve to expedite rate cuts, potentially providing a boost to risk assets.
Emerging Trends in Cryptocurrency
While Bitcoin’s performance dominated headlines, other cryptocurrencies gained significant traction. On eToro, $SUI emerged as a trending asset as its total value locked (TVL) in DeFi applications surpassed $2 billion. The asset also hit an all-time high above $5, reflecting a staggering 900% gain against the US dollar since August 2024.
In other developments, Ripple announced a partnership with Chainlink to integrate secure price data for its RLUSD stablecoin on Ethereum. This move is expected to bolster Chainlink’s position as a leading decentralized oracle network.
Meanwhile, El Salvador, a trailblazer in Bitcoin adoption, continued to expand its strategic reserve with an additional purchase of 11 Bitcoin, bringing its total holdings to 6,022.18 Bitcoin, valued at over $561 million.
As cryptocurrencies continue to navigate political and economic challenges, the market’s resilience and adaptability remain a testament to the growing mainstream acceptance of digital assets.
