Market Turmoil: Political Disputes Trigger Crypto Assets Fluctuation

Recently, a public dispute in the political arena has triggered market fluctuations. This "social media war" stems from fundamental disagreements between two prominent figures regarding economic policy, particularly concerning economic legislation and tariff policies. One side advocates for reduced regulation, especially in the fields of Crypto Assets and artificial intelligence, while the other insists on trade protectionism. Although one of them has softened their tone recently, the market has suffered a heavy blow: the stock price of a well-known electric vehicle company plummeted by 14.26% to $284.7, with a single-day market value evaporation of $153 billion. It is estimated that this upheaval has led to a $27 billion decrease in the personal wealth of a tech entrepreneur, bringing it down to $388 billion. Meanwhile, the media technology group under another political figure also dropped by 8%, with the market value of the Meme coin they hold evaporating by about $1 billion.

The initial jobless claims released on Thursday unexpectedly soared to an eight-month high, pushing U.S. Treasury yields down to a nearly one-month low, prompting the market to move its first rate cut expectation 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 direction 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 surged to 90%, and the 50 basis points rate cut expected within the year has been fully priced in.

At the same time, the political changes in South Korea may bring new opportunities to the Crypto Assets market. The newly elected party candidates have vowed to position virtual assets as a key to national financial reform, promoting token securities legislation, legalizing virtual asset spot ETFs, building a Korean won-backed stablecoin system, and even guiding the allocation of the national pension fund, which is worth $884 billion, into Crypto Assets. However, some analysts have expressed concerns about the South Korean market, pointing out that the trust crisis caused by previous Crypto Assets collapse incidents 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, near 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, 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 company noted that the trades of call options expiring in September with a strike price of $130,000 show some investors still have expectations for the third quarter. Noted investor Tim Draper continues to maintain his prediction that Bitcoin could reach $250,000 this year, believing that trade agreements, the 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, which will further promote the mainstream adoption of Bitcoin.

Ethereum fell below $2400 this morning. Crypto trader Eugene stated that he has gone long on ETH at the current price and set his stop-loss below the morning's low of $2380. Currently, ETH is re-testing the low of the medium-term range. However, Trend Research remains bullish on Ethereum, stating on the evening of June 5 that they purchased 61,000 bullish options for Ethereum, with strike prices of $3200 and $3400. It is reported that the transaction paid an option premium of over $2 million.

In the crypto market, political disputes have also given rise to some new Meme coins, with 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 position in bitcoin. It is worth noting that two weeks ago, Wynn had once made a profit of $87 million, whereas now his cumulative loss has reached $20.5 million, leaving only $700,000 in his account.

In addition, the stablecoin issuer Circle successfully entered the US 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 issuance price of $31. This success will encourage more crypto companies to advance their listing plans, including several well-known exchanges and blockchain companies.

Key Data ( as of June 6, 13:00 )

• 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( Panic )
• 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 fluctuations: The altcoin market has declined 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 channel line (2569.60 USD ), Lower channel line (2518.72 USD )

ETF Flow ( as of June 5 )

• Bitcoin ETF: -$278 million
• Ethereum ETF: +11.2587 million ( consecutive 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 Codebase Incubator Season 4, applications will close on June 6.
• Spectral(SPEC) will unlock approximately 3.62 million tokens on June 6 at 8 AM, which is 17.57% of the current circulation, valued at around 3.7 million dollars.
• Neon(NEON) will unlock approximately 53.91 million tokens on June 7 at 8 AM, accounting for 22.51% of the current circulation, valued at about 6.1 million USD.
• US unemployment rate in May (: Actual to be announced / Previous value 4.20% / Expected 4.20%
• The adjusted non-farm payroll employment in the US for May is ) million as of June 6th at 20:30: Actual to be announced / Previous value 17.7 / Expected 13

Top 500 Market Cap Biggest Fluctuations Today: Ravencoin ( RVN ) increased by 36.77%, Central African Republic Meme ( CAR ) increased by 19.06%, Fartcoin ( FARTCOIN ) increased by 18.08%, Lagrange ( LA ) increased by 11.56%, Ultima ( ULTIMA ) increased by 9.36%.

Hot News

• Abraxas Capital has made a profit of over 55 million dollars in shorting multiple coins.
• Yuga Labs proposed to dissolve the ApeCoin DAO, with a new entity ApeCo expected to take over the ecosystem.
• U.S. stocks closed lower: all three major indices fell, and a certain electric vehicle company dropped 14.26%.
• Circle's stock rose 167.35% on its first day of trading, closing at $82.88.
• The market value of Bitcoin holdings by publicly listed companies is close to $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 token disposal mechanism for involved tokens: sold through compliant exchanges in Hong Kong and submitted to the national treasury.
• Skate announces tokenomics: the initial total supply is 1 billion coins, with 10% allocated for the initial airdrop.
• A certain trading platform reports: The RWA market size surged over 260% in the first half of 2025, with clear regulations promoting industry development.
• The Central Bank of Russia plans to allow enterprises to purchase foreign stablecoins.
• A certain options trading platform: $3.8 billion in BTC options and ETH options are about to expire, with call options dominating.
• A trading platform has included BIFI, FIS, KMD, and MDT in the "monitoring label" list.