Crypto kicks off rocky H2 2025 as political tension, Musk-Trump rift hammer markets

The crypto market in the second half of 2025 has opened with declines, against the backdrop of political differences in the Middle East and the US. On July 1, the total altcoin market cap dropped below $1.30 trillion, falling to $1.29 trillion according to CoinGecko.

The broader market shed 2.51% in value over the same 24-hour period, lowering the global crypto market cap to $3.41 trillion.

Altcoins have been underperforming significantly against Bitcoin, recording weeks of sustained weak movements in their technical setup.

Altcoin market suffers in mid-2025

According to MN Capital founder and YouTuber Michael Van de Poppe, altcoins are in their deepest slump against Bitcoin in over two years. Last weekend, he shared a chart on X that showed the last comparable bottom formations occurred in June 2022 and June 2023, both of which marked significant lows in Ethereum and other altcoin valuations.

Amazing representation of the #Altcoin market.

Right now, the #Altcoins are the heaviest underperforming vs. Bitcoin for the past 2 years.

The last bottom formations:
– June '22 -> the low of the previous bear market on $ETH.
– June '23 -> the low for most altcoins

Credits:… pic.twitter.com/87u9t82bhX

— Michaël van de Poppe (@CryptoMichNL) June 29, 2025

Moreover, per data from Global Macro Investor and LSEG Datastream, the percentage of crypto assets (excluding stablecoins) outperforming Bitcoin over a rolling 90-day period has plunged to just 8%, near the lowest level seen in five years. 

Historically, this percentage has hovered around 60-80% during typical altcoin seasons, but current metrics are one of the worst on record.

Major altcoins have shown little sign of reversing course towards the upper side, with Ethereum, XRP, and Solana all facing technical barriers.

Ethereum is currently trading just under the $2,500 mark, showing constrained movement and low volatility. ETH has encountered multiple obstacles after recovering from a Fibonacci support range between $2,100 and $2,200. 

After a failed rally at its 200- and 500-day moving averages, Solana is now retesting a support zone between $143 and $149. Its prior golden cross helped sustain a small uptrend, but the next few sessions will determine if the token rebounds toward the $300 mark or drops toward $132 or lower. 

Musk and Trump go blow for blow over the big beautiful bill

The crypto market slump comes amid the “second round” of political disputes between President Donald Trump and Tesla CEO Elon Musk. After the two most-watched American personalities went neck and neck on social media at the start of June, they are back at it again. 

In the early hours of Tuesday, Musk bashed senators who voted in favor of Trump’s tax and spending “big, beautiful bill, ” saying “they should hang their heads in shame.”

“And they will lose their primary next year if it’s the last thing I do on this Earth.” Musk stated on X, threatening to publish posters labeling them “liars” and accusing them of raising US debt by $5 trillion.

President Trump hit back on Truth Social shortly, propounding that Musk had received more subsidies than any individual in US government history. 

“Without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump stated. “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.”

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