The dispute between Trump and Musk triggered turbulence in the crypto market, with nearly $1 billion in funds getting liquidated.

Market Observation

The disagreement between Trump and Musk over economic policies has sparked a public dispute, leading to severe market fluctuations. This debate mainly revolves around the "Beautiful America" Act and tariff policies. Musk, as a representative of the "tech right," tends to advocate for deregulation in areas such as encryption and artificial intelligence, while Trump's camp insists on a trade protectionism stance. Although Musk's attitude has softened recently, the market has already suffered a heavy blow: Tesla's stock price plummeted by 14.26% to $284.7, with a market capitalization evaporating by $153 billion in a single day. According to Forbes, Musk's personal fortune shrank by $27 billion, dropping to $388 billion. Meanwhile, the stock price of the media technology group related to Trump also fell by 8%, and the market value of the related tokens held by him evaporated by about $1 billion.

The initial jobless claims data released on Thursday unexpectedly rose to an eight-month high, driving U.S. Treasury yields down to a near one-month low. The market promptly brought forward its first rate cut expectations 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 have a significant impact on the direction of interest rates. Under the dual pressures of high inflation and economic slowdown, policy adjustments require more data support, especially as it may take months to assess the impact of Trump's trade policies. The interest rate swap market shows that the probability of a rate cut in September has risen to 90%, and the 50 basis points cut for the year has already been priced in by the market.

The political changes in South Korea may bring new opportunities to the crypto market. After winning, the Democratic Party candidate Lee Jae-myung promised to position virtual assets as a key focus of national financial reform, promoting token securities legislation, legalizing virtual asset spot ETFs, and building a won-pegged stablecoin system, even guiding the national pension fund to allocate 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 strict compliance requirements will test the new government's ability to balance regulation and market vitality.

Bitcoin fell to around $100,000 this morning, close to the 50-day moving average support level of $100,295. An analyst from a trading platform pointed out that if Friday's U.S. employment report shows a slowdown in the labor market, Bitcoin could rise to the range of $120,000 to $125,000; conversely, if the data is strong, the price may retreat to around $95,000. A certain capital firm noted that the trading of call options expiring in September with a strike price of $130,000 indicates that some investors still have expectations for the third quarter. Noted investor Tim Draper maintains his prediction that Bitcoin could reach $250,000 this year, believing that trade agreements, an upcoming regulatory framework, and the development of Web3 applications will drive up Bitcoin's price. He pointed out that major banks are incorporating Bitcoin into their product systems, and even some large banks that previously opposed it are planning to allow customers to use some assets linked to encryption as collateral for loans, which will further promote the mainstream adoption of Bitcoin.

Ethereum broke below $2400 this morning. Trader Eugene stated that he has gone long on ETH at the current price and set the stop-loss below this morning's low of $2380. However, a research institution is optimistic about Ethereum's prospects, stating on the evening of June 5 that it has purchased 61,000 Ethereum call options with strike prices of $3200 and $3400 respectively. It is reported that the transaction paid over $2 million in premiums.

In the crypto market, the dispute between Trump and Musk has also spawned some new Meme tokens. The major related Meme tokens, DOGE and TRUMP, both fell by 10%. A large trader on a trading platform, James Wynn, also became a victim of this dispute, as he was forcibly liquidated of 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. Notably, Wynn had previously recorded a profit of $87 million two weeks ago, but now the cumulative loss has reached $20.5 million, with only $700,000 remaining in his account.

In addition, a stablecoin issuer successfully went public in the United States, with its share price soaring nearly 170% on the first day of trading, reaching as high as $103.75 during the session, far exceeding the issue price of $31. This success will encourage more crypto companies to advance their listing plans.

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 fluctuations: The altcoin market has fallen for 3 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 line of the channel (105735.13 USD), Lower line of the channel (103641.36 USD)
• ETH Medium to Long-term Trend Channel: Upper Line of the Channel (2569.60 USD), Lower Line of the Channel (2518.72 USD)

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 zone 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

• A trading platform will launch fly.trade (FLY)
• A trading platform will delist 5 spot trading pairs including ACX/FDUSD, 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 AM on June 6th, which accounts for 17.57% of the current circulation, valued at approximately 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 approximately 6.1 million USD.
• US May Unemployment Rate (June 6, 20:30): Actual to be announced / Previous value 4.20% / Expected 4.20%
• US May seasonally adjusted non-farm payrolls ( million ) (June 6, 20:30): Actual to be announced / Previous value 17.7 / Expected 13

Top 500 market cap gainers 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%.

Hot News

• Abraxas Capital has made a profit of over $55 million in shorting multiple currencies.
• Yuga Labs proposed to dissolve the ApeCoin DAO, intending for a new entity, ApeCo, to take over the ecosystem.
• US stocks closed: all three major indexes fell, Tesla dropped 14.26%
• A certain company's stock rose 167.35% on its first day of trading, closing at $82.88.
• The value of Bitcoin holdings by publicly traded companies is close to $85 billion, more than doubling within a year.
• Origin Protocol: 100% of the protocol revenue will be directly allocated 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 pioneering mechanism for handling tokens involved in cases: selling through compliant exchanges in Hong Kong and remitting to the national treasury.
• Skate announced the tokenomics: the initial total issuance is 1 billion tokens, with 10% allocated for the initial airdrop.
• A trading platform report: The RWA market size surged over 260% in the first half of 2025, with clear regulations driving industry growth.
• The Central Bank of Russia plans to allow businesses to purchase foreign stablecoins.
• A trading platform: $3.8 billion BTC options and ETH options are about to expire, with call options dominating.
• A certain trading platform has included BIFI, FIS, KMD, and MDT in the "monitoring label" list.