Good morning, family! I believe everyone knows about the major events in the crypto space recently, Musk and Trump’s feud has caused market turmoil. But let’s take a look at the morning report together.
Today's Outlook
1. The U.S. unemployment rate for May will be released today, previous value 4.20%.
2. The U.S. non-farm payrolls for May (in tens of thousands) will be released today, previous value 1.77 million.
3. Gnosis Chain: The xDAI bridge will adopt USDS as the default token on the Ethereum chain, with migration set to take effect on June 8.
Macro & Hot Topics
1. Musk and Trump have completely fallen out. In the early hours of June 6, Musk and Trump faced off on X, with Musk revealing Trump’s involvement in the Epstein case and criticizing his 'Beauty Act' as a disastrous deficit tool, causing turmoil within the Republican Party. During the exchange, Trump criticized Musk, stating he had canceled the electric vehicle mandate and suggested ending its government subsidies, claiming the policy 'nobody wanted'. He also proposed terminating government subsidies and contracts received by Musk's companies to save 'hundreds of billions' in budget. Trump emphasized that his proposed fiscal bill would cut $1.6 trillion in spending and implement the largest tax cuts in history, warning that failure to pass it would lead to a 68% tax burden increase and more severe consequences.
2. Circle triggered a circuit breaker twice, and the stablecoin market could grow tenfold in the next five years. Stablecoin issuer Circle Internet Group and its selling shareholders raised nearly $1.1 billion in their initial public offering (IPO), after which the company's stock price surged 186% at the open, triggering circuit breakers twice. Circle has become one of the few pure cryptocurrency companies listed in the U.S., alongside Coinbase, Mara Holdings, and Riot Platforms. With the U.S. government's friendly attitude, the cryptocurrency industry is gaining new political support. Particularly in the stablecoin sector, as Congress is expected to pass stablecoin-related legislation this summer, the sector has been accelerating its development. Wall Street analysts state that the stablecoin market could grow tenfold in the next five years, creating a trillion-dollar market opportunity.
3. The Trump family's company, World Liberty Financial, has sent a cease and desist letter to the issuer of the Trump meme coin, Fight Fight Fight, opposing its collaboration with Magic Eden to launch a cryptocurrency wallet called '$TRUMP Wallet'. The two parties have erupted in conflict over the Trump brand's cryptocurrency asset layout, particularly because both companies are developing similar wallet products to attract Trump supporter users. Since its launch in January, the meme coin has generated over $300 million in revenue for Fight Fight Fight. Trump's son has publicly distanced himself from the wallet association, while another wallet plan by the family is still progressing.
4. The Republican Party in the U.S. Senate is pushing to include cryptocurrencies in tax and spending bills. Wyoming Republican Senator Cynthia Lummis is advocating for the inclusion of provisions in her party's tax and spending bill to reform the way the U.S. taxes cryptocurrencies. The core content includes extending the securities transaction 'wash sale rule' to the cryptocurrency sector, which is expected to bring in billions of dollars in tax revenue while exempting Bitcoin miners from reporting gains and losses. Lummis submitted a tax reform proposal drafted in collaboration with Senator Kirsten Gillibrand to Senate Finance Committee Chairman Mike Crapo.
Market Trends
1. Affected by news, BTC experienced a sharp short-term drop, falling to the $100,000 mark; over the past 24 hours, liquidations totaled $981 million, mainly in long positions; the overall market declined, while memecoin RFC FARTCOIN showed remarkable gains.
2. The S&P 500 index halted three consecutive gains, the Nasdaq fell 0.8%, Tesla plummeted 14%; silver soared to a thirteen-year high, and copper prices reached a two-month high.
3. In the BG BTC/USDT liquidation map, based on the current 101,323 USDT, if it drops 2,000 points to around 99,323, the total liquidation amount for long positions will exceed $201 million. If it rises 2,000 points to around 103,323, the total liquidation amount for short positions will exceed $368 million. The liquidation amount for shorts is higher than that for longs, suggesting a reasonable control of leverage ratios to avoid triggering large-scale liquidations amidst market fluctuations.
4. In the past 24 hours, BTC saw an inflow of $30.7 billion and an outflow of $36.9 billion, resulting in a net outflow of $6.2 billion.
5. Over the past 24 hours, contract trading for ETH, BTC, SOL, BNB, RP, etc. has seen leading net outflows, indicating potential trading opportunities.
