crypto market fluctuates: Trump and Musk exchange fire from a distance, Get Liquidated nearly 1 billion dollars

Market Observation

Trump's public dispute with Musk over economic policy has triggered market turbulence. This debate stems from the fundamental differences between the two on issues such as the "Beautiful America" initiative and tariff policies. Musk's "tech right" advocates for deregulation, especially in the fields of encryption and artificial intelligence, while Trump's camp insists on a protectionist trade stance.

Despite Musk's recent softer tone, the market has been severely impacted. A major electric vehicle manufacturer's stock price plummeted by 14.26% to $284.7, with a single-day market value evaporation of $153 billion. It is estimated that this turmoil has caused Musk's personal wealth to shrink by $27 billion to $388 billion. At the same time, a media technology group related to Trump saw its stock price drop by 8%, with the value of the Meme coins it holds evaporating by about $1 billion.

The number of initial jobless claims reported on Thursday unexpectedly surged to an eight-month high, pushing U.S. Treasury yields down to their lowest level in nearly a month. The market immediately shifted its expectations for the first rate cut from October to September. Although it is highly likely that interest rates will remain unchanged this month, the upcoming non-farm payroll report could completely alter 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 indicates that the probability of a rate cut in September has soared to 90%, and the 50 basis points cut for the year has been fully priced in.

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

Bitcoin fell to around $100,000 this morning, nearing the support level of the 50-day moving average at $100,295. An analyst 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. There are opinions indicating that the trading of call options expiring in September with a strike price of $130,000 shows 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 up Bitcoin prices. 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 loan collateral, which will further drive Bitcoin's mainstream adoption.

Ethereum fell below $2400 this morning. A certain crypto trader stated that they have gone long on ETH at the current price, setting a stop-loss below this morning's low of $2380. Currently, ETH is retesting the lower end of the mid-range. However, another research institution remains bullish on Ethereum, stating on the evening of June 5 that they have purchased 61,000 Ethereum call options, with strike prices of $3200 and $3400 respectively. It is reported that the total premium paid for this transaction exceeds $2 million.

In the crypto market, the dispute between Trump and Musk has also given rise to several new themed tokens. Major Meme coins related to this have all dropped by 10%. A whale trader on a trading platform 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 for this long Bitcoin trade. It is worth noting that two weeks ago, this trader had once made a profit of $87 million, but now his cumulative loss has reached $20.5 million, with only $700,000 left in his account.

In addition, a stablecoin issuer successfully entered the US market, with its stock price soaring nearly 170% on the first day of its IPO, briefly reaching $103.75, 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%
• 24-hour BTC Long/Short Ratio: 0.9623
• Sector Gains and Losses: The altcoin market has declined for 3 consecutive days, with L2 down by 5.89%; Meme down by 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 BTC liquidation of 341 million USD, ETH liquidation of 285 million USD, and DOGE liquidation of 27.1169 million USD.
• BTC Mid 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 Line of the Channel ($2569.60), Lower Line of the Channel ($2518.72)

ETF Flows (As of June 5)

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

Today's Outlook

• The trading platform Alpha will launch fly.trade (FLY)
• A trading platform will delist 5 spot trading pairs including ACX/FDUSD, 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 approximately 3.7 million dollars.
• 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%
• The seasonally adjusted non-farm payrolls in the U.S. for May is ( million ) (June 6, 20:30): actual to be announced / previous value 17.7 / expected 13

Today's top 500 market cap biggest gainers: 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 from shorting multiple cryptocurrencies.
• Yuga Labs proposed to dissolve the ApeCoin DAO, with a new entity ApeCo intended to take over the ecosystem.
• US stocks closed: all three major indexes fell, Tesla dropped 14.26%
• A certain stablecoin issuer rose 167.35% on its first day of listing, closing at a price of $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 distributed to OGN stakers.
• The number of initial jobless claims in the US 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 its tokenomics: The total initial issuance is 1 billion tokens, and the initial airdrop accounts for 10%.
• A trading platform reports: The RWA market size surged 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 in 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.