Trump and Musk's remote debate causes market turmoil, with nearly $1 billion in the encryption sector getting liquidated.

Market Observation

Trump and Musk's public dispute over economic policies has triggered market turbulence. This debate stems from their fundamental differences on issues such as the "Beautiful Big" bill and tariff policies. Musk favors deregulation in areas like encryption and artificial intelligence, while Trump's camp insists on a trade protectionist stance.

This turmoil has dealt a heavy blow to the market: the stock price of a well-known electric vehicle company plummeted 14.26% to $284.7, with a market value evaporating by $153 billion in one day. It is estimated that Musk's personal wealth shrank by $27 billion to $388 billion. At the same time, the stock price of the media technology group under Trump fell by 8%, and the market value of the Meme coins it holds evaporated by approximately $1 billion.

The number of initial jobless claims released on Thursday unexpectedly surged to an eight-month high, pushing U.S. Treasury yields down to their lowest point in nearly a month. The market immediately shifted its expectations for the first rate cut from October to September. Although the Federal Reserve is highly likely to maintain interest rates this month, the upcoming non-farm payroll report could completely change the trajectory of interest rates. Under the dual pressure 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 reduction of 50 basis points fully priced in for the year.

The political transformation in South Korea may bring new opportunities to the encryption market. The Democratic Party candidate Lee Jae-myung stated that after being elected, he would promote legislation for token securities, the legalization of virtual asset spot ETFs, and the establishment of a Korean won-pegged stablecoin system, and even guide the national pension fund to allocate crypto assets. However, some analysts have expressed concerns about the South Korean market, pointing out that past trust crises and stringent 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 support level of the 50-day moving average at $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 growth, 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 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.

Silicon Valley investor Tim Draper still insists that Bitcoin could reach $250,000 this year, believing that the Trump trade agreement, the upcoming regulatory framework, and the development of Web3 applications will drive the price of Bitcoin higher. He noted that major banks are incorporating Bitcoin into their product systems, which will further promote the mainstream adoption of Bitcoin.

Ethereum fell below $2400 this morning. Crypto trader Eugene stated that he is currently going long on ETH at this price and has set a stop-loss below this morning's low of $2380. However, a research institution remains bullish on Ethereum, 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 this transaction paid more than $2 million in premiums.

In the encryption market, the dispute between Trump and Musk has also led to the emergence of several 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 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. It is worth noting that two weeks ago, Wynn had at one point made a profit of $87 million, but now his cumulative losses have reached $20.5 million, with only $700,000 left in his account.

In addition, a stablecoin issuer successfully entered the U.S. market, with its stock price soaring nearly 170% on the first day of its IPO, reaching as high as $103.75 during trading, far exceeding the issue price of $31. This success will encourage more encryption 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%
• 24-hour BTC Long-Short Ratio: 0.9623
• Sector Performance: The altcoin market has declined for three consecutive days, with L2 down 5.89%; Meme down 5.67%.
• 24-hour Get Liquidated data: A total of 225,036 people were Get Liquidated globally, with a total amount of 980 million USD, including 341 million USD for BTC, 285 million USD for ETH, and 27.1169 million USD for DOGE.
• 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 boundary line (2569.60 USD), Lower boundary line (2518.72 USD)

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 5 spot trading pairs including ACX/FDUSD and IDEX/FDUSD on June 6.
• Avalanche launches the Codebase Incubator Season 4, with applications closing on June 6th.
• Spectral (SPEC) will unlock approximately 3.62 million tokens on June 6 at 8:00 AM, which accounts for 17.57% of the current circulating supply, valued at about 3.7 million USD.
• Neon (NEON) will unlock approximately 53.91 million tokens at 8 AM on June 7th, 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%
• The 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 largest 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%.

Hot News

• Abraxas Capital has made a profit of over 55 million dollars 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, a certain electric vehicle company dropped by 14.26%
• A certain stablecoin issuer rose 167.35% on its first day of listing, with a closing price of $82.88.
• The market value of Bitcoin holdings by publicly listed companies is close to $85 billion, more than doubling in 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 involved tokens: selling through compliant exchanges in Hong Kong and remitting to the national treasury.
• Skate announced its token economics: the total initial issuance is 1 billion tokens, with 10% allocated for the initial airdrop.
• A certain trading platform report: The RWA market size surged by over 260% in the first half of 2025, with clear regulations driving industry development.
• The Central Bank of Russia plans to allow enterprises 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 tag" list.

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