Crypto market volatility: Political tech giants clash from afar, traders actively position themselves.

Market Observation

Recently, a public dispute between two heavyweight figures from the political and tech sectors over economic policy has caused market turbulence. This debate mainly revolves around the U.S. economic legislation and tariff policies, reflecting significant differences in economic priorities among different factions. One side advocates for deregulation in areas such as encryption, artificial intelligence, while the other insists on a protectionist trade stance.

Despite a recent easing in tone from one side of the debate, the market has been severely impacted. The stock price of a well-known electric vehicle company plummeted by 14.26% to $284.7, with a single-day market value loss of $153 billion. According to Forbes, this turmoil has led to a personal wealth decrease of $27 billion for the relevant individuals, bringing their total to $388 billion. Meanwhile, a media technology group under the other side also fell by 8%, with a market value loss of approximately $1 billion for its holdings in Meme coins.

The number of initial jobless claims unexpectedly surged to an eight-month high, driving U.S. Treasury yields down to a nearly one-month low, prompting the market to shift its expectations for the first rate cut from October to September. Although the Federal Reserve is highly likely to keep interest rates unchanged this month, the upcoming non-farm payroll report could completely change the direction of interest rates. Under the dual pressures of high inflation and economic slowdown, a policy shift requires more data support. The interest rate swap market shows that the probability of a rate cut in September has soared to 90%, with a 50 basis point cut within the year fully priced in.

The political changes in South Korea may bring new opportunities for the crypto market. After a resounding victory, Democratic Party candidate Lee Jae-myung vowed to position virtual assets as key to national financial reform, promoting token securities legislation, legalizing virtual asset spot ETFs, and establishing a Korean won-pegged stablecoin system, even guiding the allocation of the national pension fund amounting to $884 billion towards crypto assets. However, some analysts have expressed concerns about the South Korean market, pointing out that the trust crisis caused by previous cryptocurrency crash events and the stringent compliance requirements will test the new government's ability to balance regulation and market vitality.

Bitcoin fell to around 100,000 USD this morning, nearing the support level of 100,295 USD for the 50-day moving average. An analyst from a trading platform pointed out that if Friday's US employment report shows a slowdown in the labor market growth, Bitcoin could rise to the range of 120,000 to 125,000 USD; conversely, if the data is strong, the price may fall back to around 95,000 USD. Another capital institution noted that the trading of call options expiring in September with a strike price of 130,000 USD indicates that some investors still have expectations for the third quarter.

Famous Silicon Valley investor Tim Draper still insists that Bitcoin could reach $250,000 this year, believing that trade agreements, upcoming regulatory frameworks, and the development of Web3 applications will drive the price of Bitcoin upward. He pointed out that major banks are incorporating Bitcoin into their product systems, and even financial institutions that have long resisted are planning to allow their trading and wealth management clients to use some assets linked to encryption as collateral for loans, which will further promote the mainstream adoption of Bitcoin.

Ethereum dropped below $2400 this morning. Crypto trader Eugene stated that he has gone long on ETH at the current price and set a stop loss below this morning's low of $2380. Currently, ETH is retesting the lows of the mid-range. However, Trend Research remains optimistic about Ethereum, stating on the evening of June 5 that it has purchased 61,000 call options for Ethereum on a certain trading platform, with strike prices of $3200 and $3400 for ETH call options. It is reported that the total premium paid for this trade exceeded $2 million.

In the crypto market, political and business disputes have also spawned a batch of new Meme coins, with the major related Meme coins all dropping by 10%. A whale on a trading platform, James Wynn, also became a victim of this dispute, as he was forced to liquidate 379 bitcoins at 1 AM. Subsequently, he chose to actively clear his remaining positions, resulting in a total loss of $2.9 million from this long bitcoin trade. It is worth noting that two weeks ago, Wynn had once made a profit of $87 million, but now the total loss has reached $20.5 million, with only $700,000 remaining in his account.

In addition, the stablecoin issuer Circle successfully landed in the U.S. market, with its stock price soaring nearly 170% on the first day of its IPO, reaching a peak of $103.75 during trading, far exceeding the issue price of $31. This success will encourage more crypto companies to advance their listing plans, including several well-known trading platforms and blockchain service providers.

Key Data (As of June 6, 13:00 HKT)

• Bitcoin: $102,942 (Year-to-date +10.1%), daily spot trading volume $42.877 billion
• Ethereum: $2,458.58 (Year-to-date -26.29%), daily spot trading volume is $27.835 billion
• Fear and Greed Index: 46 (Fear)
• Average GAS: BTC: 1.49 sat/vB ETH: 3.25 Gwei
• Market Share: BTC 63.7%, ETH 9.2%
• Trading platform 24-hour trading volume ranking: RVN, BTC, XRP, ETH, DOGE
• 24-hour BTC long-short ratio: 0.9623
• Sector Performance: The altcoin market has fallen for three consecutive days, with L2 down 5.89%; Meme down 5.67%.
• 24-hour liquidation data: A total of 225,036 people were liquidated globally, with a total liquidation amount of 980 million USD, including 341 million USD in BTC liquidations, 285 million USD in ETH liquidations, and 27.1169 million USD in DOGE liquidations.
• BTC medium to long-term trend channel: upper channel line (105735.13 USD), lower channel line (103641.36 USD)
• ETH Medium to Long-Term Trend Channel: Upper Channel Line ($2569.60), Lower Channel Line ($2518.72)

Note: When the price is above the upper and lower bounds, it indicates a medium to long-term bullish trend; conversely, it indicates a bearish trend. When the price is within the range or fluctuates through the cost range in the short term, it indicates a bottoming or topping state.

ETF Flows (as of June 5)

• Bitcoin ETF: -$278 million
• Ethereum ETF: +11.2587 million (14 consecutive days of net inflow)

Today's Outlook

• The trading platform Alpha will launch fly.trade (FLY)
• A trading platform will delist the 5 spot trading pairs including ACX/FDUSD and IDEX/FDUSD on June 6.
• Avalanche launches the fourth season of the Codebase incubator, with applications closing on June 6.
• Spectral (SPEC) will unlock approximately 3.62 million tokens at 8:00 AM on June 6, which accounts for 17.57% of the current circulating supply, worth about 3.7 million USD.
• Neon (NEON) will unlock approximately 53.91 million tokens on June 7 at 8 AM, which accounts for 22.51% of the current circulating supply, valued at around 6.1 million USD.
• US May unemployment rate (June 6, 20:30): Actual to be announced / Previous value 4.20% / Expected 4.20%
• The seasonally adjusted non-farm employment population in the US for May is ( million (June 6, 20:30): Actual to be announced / Previous value 17.7 / Expected 13

Top 500 market cap gains today: Ravencoin (RVN) up 36.77%, Central African Republic Meme (CAR) up 19.06%, Fartcoin (FARTCOIN) up 18.08%, Lagrange (LA) up 11.56%, Ultima (ULTIMA) up 9.36%.

Trending News

• Abraxas Capital has made a profit of over $55 million in shorting multiple cryptocurrencies.
• Yuga Labs proposed to dissolve the ApeCoin DAO, with a new entity ApeCo taking over the ecosystem.
• US stocks closed lower: the three major indexes fell, a certain electric vehicle company plummeted by 14.26%
• Circle rose 167.35% on its first day of trading, closing at $82.88.
• The market value of Bitcoin holdings by publicly listed companies is nearly $85 billion, more than doubling within a year.
• Origin Protocol: 100% of the protocol revenue will be directly distributed to OGN stakers.
• The number of initial jobless claims in the U.S. for the week ending May 31 was 247,000, higher than expected.
• Beijing police pioneered a mechanism for handling tokens involved in cases: sold through compliant exchanges in Hong Kong and submitted to the national treasury.
• Skate announced the tokenomics: the total initial issuance is 1 billion tokens, with 10% allocated for the initial airdrop.
• A trading platform report: The RWA market size surged more than 260% in the first half of 2025, with clear regulations driving industry growth.
• The Central Bank of Russia plans to allow companies to purchase foreign stablecoins.
• A certain options trading platform: $3.8 billion BTC options and ETH options are about to expire, with call options dominating.
• A trading platform has added BIFI, FIS, KMD, and MDT to the "monitoring label" list.