Can Trump Media’s $293M Bitcoin bet push BTC back above $65K?
Trump Media buys Bitcoin despite their massive loss in the second quarter of the year.
Bitcoin [BTC] slipped below the $65K price level where it had stabilized over the past month. However, some institutions continue to accumulate while whales and retailers remain divided.
For instance, President Donald Trump’s team was loading for the next crypto bull run while everyone was panicking. Will this move help BTC price reclaim $65K even as recovery efforts remain tentative?
Trump Media shifts focus on BTC after Q2 loss
According to a report from the U.S. SEC, the Trump Media team sold equity securities and invested the capital in Bitcoin in the second quarter of the year.
The Trump Media team disclosed they had added 4,662 BTC worth more than $293 million at an average fee of $62,982. The latest addition brought their total holdings to 14,139 BTC, valued at $900 million.
The buying suggested a strategic shift towards Bitcoin as Trump Media posted a loss of $238 million in Q2, ten times bigger than one recorded a year ago. Whether this BTC bet can offset the company’s loss remains a subject of debate.
Why does BTC’s recovery remain tentative?
During this period of stagnation around $65K, the spot taker CVD showed strong demand alongside institutional inflows and easing downside hedging.
The spot CVD showed buyers bought $80.30 million in BTC, while the weekly ETF net flow hit $770.60 million. Moreover, hot capital share rose from 15 to 22.42, indicating a slow return of short-term traders.
On the contrary, there was subdued spot liquidity and weak network activity. That is, active addresses, transfer volume, and fees declined. Hence, its recovery remained uncertain as price action suggested a transitional phase.
Can BTC price reclaim the $65K level?
On the charts, the battle between bulls and bears was heating up. Since the start of June, BTC price has been stabilizing between the $62K and $66K levels.
This situation is due to mixed trader sentiments. Several traders opened massive BTC positions with leverage, as per Lookonchain.
That is, four of them shorted 3,895 BTC worth $249 million with liquidation prices around $66K. In a similar move, two traders took long positions on 1,547 BTC valued at $99 million, with liquidation prices set at $61K.
Therefore, Bitcoin remains in transitional price action unless market conditions shift for the worse. In case the $60K support is lost, BTC would present a more pronounced bearish market structure. Otherwise, a recovery of $65K remains plausible.
Final Summary
- In Q2, Trump Media added 4,662 BTC to their holdings despite recording a massive loss of $238 million.
- Bitcoin was trading in a transitional price action, but its network activity remained weak to support a recovery.
