Bitcoin price may be setting up for its next major short squeeze. After dipping into weakness, BTC has already rebounded to $113,000, liquidating blocks of shorts as traders warn that market makers are laying a “giant bear trap.”

 A fresh forecast by traders sees a repeat of the late 2024 breakout, with the setup primed for a massive squeeze in the coming weeks. 

Meanwhile, Wall Street is shifting its outlook on U.S. interest rates after a weak jobs report, with Bank of America, Goldman Sachs, and Citigroup now projecting multiple cuts in 2025—an outlook that could supercharge risk assets like Bitcoin.

From looming short squeezes to rate-cut bets, here’s a look at the week’s biggest crypto stories.

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TOP CRYPTO NEWS RECAP (August 31- September 6, 2025)

• Trump Media, Crypto.com Ink $6.4B CRO Treasury Deal
• Justin Sun Battles WLFI Over Frozen Tokens Amid Selling Allegations
• Crypto Giant Hits Roadblocks on S&P 500 Bid
• $13.5M Saved in Swift DeFi Phishing Response
• Dogecoin Treasury Fuels Bullish Push to $1.40
• Ethereum’s ‘1971 Moment’: BitMine Expands $65M ETH Bet

Trump Media, Crypto.com Ink $6.4B CRO Treasury Deal

Trump Media has partnered with Crypto.com to establish a $6.4B CRO treasury, starting with the purchase of 684.4M CRO ($105M). The move could integrate CRO into Truth Social’s rewards ecosystem. With CRO already up 66% since the announcement, the deal marks one of the largest corporate crypto commitments to date.

Justin Sun Battles WLFI Over Frozen Tokens Amid Selling Allegations

Tron founder Justin Sun accused Trump-linked WLFI of freezing his pre-sale tokens after $9M in suspicious transfers were flagged. Sun denies selling, claiming decentralization is at risk if projects blacklist investors. Critics remain split, with some alleging hidden dumps via HTX and Binance. The standoff now threatens WLFI’s credibility and token stability.

Crypto Giant Hits Roadblocks on S&P 500 Bid

Michael Saylor’s Strategy appears eligible for the S&P 500 with a $92B market cap and $5.3B profits. Analysts see a 91% chance of inclusion, but concerns over Bitcoin exposure and 96% stock volatility could derail approval. Despite Coinbase and Block securing entry, Strategy’s acceptance hinges on the Index Committee’s discretion.

$13.5M Saved in Swift DeFi Phishing Response

A phishing hack tied to North Korea’s Lazarus Group stole $13.5M from Venus Protocol user Kuan Sun. Swift intervention, emergency liquidation, security firm alerts, and Binance support enabled recovery within 12 hours. Venus confirmed systems were safe, framing the event as a rare win against crypto crime. Sun praised the collective effort.

Dogecoin Treasury Fuels Bullish Push to $1.40

CleanCore Solutions launched a $175M Dogecoin treasury, backed by 80+ investors and supported by the Dogecoin Foundation. Analysts see parallels to Bitcoin’s ETF-driven surge, with odds of a U.S. DOGE ETF at 79% by 2025. Chart patterns suggest a bullish breakout, with potential upside to $1.40, a 550% rally from current levels.

Ethereum’s ‘1971 Moment’: BitMine Expands $65M ETH Bet

BitMine Immersion Technologies has added $65M in Ethereum to its holdings, now controlling 1.5% of the ETH supply. Chairman Tom Lee compared ETH’s adoption to gold in 1971, predicting a $60K price target. With ETH reserves on exchanges at a three-year low, BitMine’s stock has soared 540% this year on its bold treasury strategy.

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