Why Crypto Prices Are Soaring: BTC, ETH, and SOL Lead the Charge

What’s behind the rally?

After a week of unease caused by U.S.-China trade tensions and a fiery exchange between Elon Musk and President Donald Trump? It boils down to three things: renewed optimism over trade talks, a cooldown in political drama, and fresh waves of institutional money flowing into crypto ETFs.

Hope is returning to the markets as U.S.-China trade talks pick up momentum in London. These negotiations, which kicked off on June 9, follow months of rising tension.

Back in April, President Trump announced a staggering 145% tariff on Chinese imports, sparking panic and dragging Bitcoin down 7% to $81,500. China fired back with 125% tariffs on U.S. goods, sending Ethereum and Solana into double-digit losses.

In May, both sides agreed to a temporary de-escalation, trimming tariffs to 30% and 10% for 90 days. Still, accusations of non-compliance quickly resurfaced, threatening to reignite the trade war.

But a June 5 phone call between Trump and Chinese President Xi Jinping has injected fresh optimism. The two leaders spoke for over two hours, with Trump calling it a “very good” conversation. Now, U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng are in talks to iron out key issues; semiconductors, rare earth minerals, and AI among them.

This easing of tensions, combined with a softer U.S. dollar (down 0.6% this week) and a rally in China’s bond market, is adding fuel to crypto’s rebound. With looser global liquidity, investors are once again turning to Bitcoin as a hedge.

BitEdge analysts point to a 0.65 correlation between BTC and the global money supply. If negotiations stay on track, risk assets like crypto could keep climbing. If they collapse, though, expect fireworks. Gold’s 2% rise to $2,920 today hints at growing hedging activity.

The Musk-Trump Feud Rattled the Market—But the Storm May Be Passing

Just a few days ago, crypto markets were in turmoil thanks to a high-profile feud between Elon Musk and President Trump. On June 4, Bitcoin slid to $103,500, Ethereum dipped to $2,420, and Solana tumbled to $151. Over $620 million in crypto positions were liquidated in 24 hours.

The chaos started when Musk, never one to hold back, blasted Trump’s “One Big Beautiful Bill Act” on X, slamming it as a “disgusting abomination” due to its $2.4 trillion deficit impact. Trump fired back, threatening to revoke Musk’s federal contracts, including SpaceX’s $3 billion worth of government deals.

The fallout was swift: Tesla shares nosedived 14.3%, wiping out $150 billion in market value. Making matters worse, a whale dumped 1,200 BTC (worth \$124 million) on Binance, sparking a wave of panic reminiscent of the April tariff crash.

By June 7, though, things were cooling off. Trump told CNN he’s “not thinking about” Musk, signaling a de-escalation. Meanwhile, Musk pivoted to criticizing the bill’s pork-barrel spending instead.

The Crypto Fear & Greed Index, which had plunged to 32 (“Fear”), rebounded to 82 (“Extreme Greed”). Even Tesla shares managed to claw back 4% of the losses. With tensions easing, crypto markets have found their footing again.

Institutional Inflows Give the Rally Extra Juice

Big money is pouring into crypto once more, especially through ETFs.

1. Spot Bitcoin ETFs saw $375 million in net inflows this week alone. BlackRock’s iShares Bitcoin Trust (IBIT) led the charge with $210 million in inflows. BitEdge estimates these funds could hold 7% of all BTC supply by the end of the year.
2. Ethereum ETFs are also gaining traction, raking in $72 million over the past two weeks. Solana is joining the party too, pulling in $22 million as investor interest spikes. And there’s good reason for the enthusiasm.
3. Solana’s blockchain processed a jaw-dropping $13.5 trillion in stablecoin volume so far in 2025–67% of the market. Its DeFi total value locked (TVL) is also up 32% since February, to $10.5 billion. With VanEck and 21Shares submitting ETF filings for Solana, many traders are betting the token could breach $200 by Q3.

The Charts Say There’s More Room to Run

From a technical standpoint, the bulls are still in control.

• Bitcoin is comfortably holding above its 50-day moving average of $106,500. If it breaks through \112,000, analysts expect a push toward $115,000.
• Ethereum ratio (ETH/BTC) climbed 2.5% to 0.0241, hinting at strengthening altcoins.
• Solana saw a 70% surge in trading volume to $3.3 billion, with strong support around $160.

That said, risks are still on the table. Trade cautiously.