Trump Advisor Meets Bukele as US Scrutinizes El Salvador’s Bitcoin Success – ETH and Altcoins Stumble
The cryptocurrency market is undergoing a period of significant turbulence, with Bitcoin (BTC) losing its grip on the $105K level and altcoins facing steep retracements. Meanwhile, geopolitical developments are shaping the future of digital assets, as a key advisor to former U.S. President Donald Trump met with El Salvador’s President Nayib Bukele to discuss Bitcoin strategy.
This article explores the latest market trends, regulatory threats in Europe, Ethereum’s shifting treasury strategy, and the potential for sovereign wealth funds to enter the crypto space.
Trump Advisor Bo Hines Meets El Salvador’s Bukele Over Bitcoin Strategy
Bo Hines, who leads Donald Trump’s advisory council on digital assets, recently met with El Salvador’s President Nayib Bukele to discuss potential crypto partnerships. In a June 5 post, Hines revealed that their conversation revolved around reshaping global finance through digital asset innovation.
El Salvador made history in 2021 by adopting Bitcoin as legal tender—a move that has drawn both praise and scrutiny from global financial institutions. The U.S., in particular, has been closely monitoring El Salvador’s Bitcoin experiment, with some lawmakers expressing concerns over financial stability risks.
This meeting suggests that if Trump returns to office in 2024, his administration may take a more crypto-friendly stance—potentially aligning with Bukele’s vision of Bitcoin as a tool for economic sovereignty.
Ethereum Foundation Overhauls Treasury Strategy Amid Market Uncertainty
The Ethereum Foundation (EF) announced a major shift in its treasury management policy on June 4, aiming to ensure long-term sustainability while supporting ecosystem growth. The new framework focuses on diversifying holdings and optimizing capital allocation—a move that could stabilize ETH’s price amid recent volatility.
This comes as Joe Lubin, co-founder of Ethereum and CEO of ConsenSys, hinted that sovereign wealth funds are eyeing Ethereum for large-scale investments. If true, this could trigger a massive ETH buy-up, pushing prices higher despite current bearish trends.
However, ETH has struggled alongside other altcoins, dropping sharply after Bitcoin lost the $105K support level. Analysts are watching whether institutional interest can outweigh short-term selling pressure.
Europe’s Regulatory Threat: Could Bitcoin Become Illegal?
A shocking warning emerged from Alexandre Stachtchenko of Paymium, who argued that proposed European Data Protection Board (EDPB) guidelines could effectively ban Bitcoin in Europe. The draft rules classify public keys as personal data—making compliance nearly impossible for decentralized networks like Bitcoin.
If enacted, this regulation would force exchanges and wallet providers to implement Know Your Customer (KYC) measures for all transactions—a move that contradicts Bitcoin’s pseudonymous nature. The crypto community is pushing back, but the threat remains real as EU regulators tighten oversight.
Altcoins Face Steep Declines as BTC Loses Key Support
The broader crypto market has taken a hit following Bitcoin’s drop below $105K. Several altcoins have suffered double-digit losses:
- XRP failed to hold above $2.30 due to heavy selling pressure.
- Dogecoin (DOGE) struggles to reclaim $0.19 amid persistent bearish sentiment.
- Monero (XMR) and Ethena (ENA) were among the worst performers, dropping over 10% in 24 hours.
Analysts attribute this downturn to profit-taking after months of bullish momentum. However, some traders see this as a buying opportunity before the next rally.
Whale Activity: $6M Bet on Hyperliquid (HYPE) – Breakout or Bust?
A mysterious whale placed a $6 million bet on Hyperliquid (HYPE), fueling speculation of an impending breakout above $40. On-chain data shows strong accumulation near key support levels, while stable funding rates suggest bullish sentiment among derivatives traders.
If HYPE breaks resistance at $40, it could trigger a major rally—but failure to hold could lead to a sharp correction given current market conditions.
Mastercard Plans Full EU Transaction Tokenization by 2030
In traditional finance news, Mastercard announced that nearly half of its e-commerce transactions are now tokenized. The payments giant aims to fully transition away from manual card transactions in the EU by 2030—a move that could bridge traditional finance with blockchain-based solutions.
Tokenization enhances security by replacing sensitive card details with unique digital tokens—a concept borrowed from crypto wallets like MetaMask and Ledger. This signals growing institutional adoption of blockchain technology beyond speculative trading.
Cardi B’s WAP Memecoin Rug Pull: Another Celebrity Crypto Scam
Celebrity-endorsed memecoins continue to face credibility issues after rapper Cardi B promoted WAP coin, only for it to crash by over 90% shortly after launch. On-chain sleuths found that insiders dumped tokens immediately after her social media post—a classic “pump-and-dump” scheme.
This highlights the risks of celebrity-backed crypto projects, where influencers often profit at the expense of retail investors. Regulatory crackdowns on such scams may intensify in coming months.
Market Outlook: Will BTC and Altcoins Recover?
Bitcoin’s dominance remains strong despite recent dips, with analysts eyeing key support levels around $100K. If BTC stabilizes, altcoins could rebound—especially those with strong fundamentals like Ethereum and Solana. However, regulatory uncertainty in Europe and U.S. political shifts will play a crucial role in shaping market sentiment moving forward.
For now, traders should watch for:
- Bitcoin reclaiming $105K as a bullish signal
- Ethereum ETF approvals, which could drive institutional inflows
- Whale accumulation patterns in altcoins like HYPE and XRP
- EU regulatory decisions impacting Bitcoin’s legality
Conclusion: A Pivotal Moment for Crypto Markets
The meeting between Trump advisor Bo Hines and President Bukele underscores Bitcoin’s growing geopolitical significance—while Ethereum faces both challenges and opportunities with sovereign wealth fund interest. Meanwhile, European regulations threaten Bitcoin’s future viability on the continent, adding another layer of uncertainty for investors.
As altcoins struggle to regain momentum, strategic bets on undervalued projects could yield high returns—but caution is advised amid rug pulls and regulatory risks. The next few weeks will be critical in determining whether crypto markets resume their upward trajectory or face further corrections.