I. Event Review: From allies to enemies, a financial tsunami triggered by policy differences!

On June 5, 2025, the globally watched 'political and business showdown' erupted: U.S. President Trump publicly broke with Tesla CEO Elon Musk over the (Big and Beautiful Act). Musk criticized the act as 'robbing the poor to pay the rich', canceling electric vehicle subsidies while retaining fossil fuel incentives; Trump threatened to terminate government contracts with SpaceX and Tesla, calling Musk 'crazy'. This conflict quickly affected the financial markets:

• Cryptocurrency plummeted: Bitcoin dropped over 3% in 24 hours, briefly falling below $100,000; Ethereum plunged 7%, Dogecoin (DOGE) crashed 9.3%, with nearly $1 billion in liquidations across the network.

• Tesla's stock price crash: $150 billion evaporated in market value in one day, dragging down the Nasdaq index.

II. Three core logics of turbulence in the cryptocurrency market!

1. Policy uncertainty impacts market confidence:

Musk was once a key promoter of Trump's 'crypto-friendly policy'; his exit has intensified market concerns about a regulatory shift. If the Trump administration tightens its stance on cryptocurrencies (such as delaying ETF approvals or imposing trading taxes), short-term liquidity may further shrink.

2. Chain reaction of leveraged liquidation:

High-leverage long positions (especially Bitcoin contracts) triggered a chain liquidation during the price drop, forming a vicious cycle of 'decline → forced liquidation → accelerated decline'. Data shows that 220,000 investors faced liquidations due to this volatility, with the largest single loss reaching $10 million.

3. Over-reliance on 'celebrity effect':

Musk and Trump's statements have long-term effects on cryptocurrency market sentiment, and this conflict exposed the vulnerability of a market dominated by centralized authorities. Some analysts believe that decentralized finance (DeFi) may gain more attention as a result.

III. Market Outlook: Opportunities amid crises, focus on three key signals!

1. Follow-up developments of policy games:

If both parties compromise (such as retaining some new energy subsidies), the market may recover quickly; if the conflict escalates (such as Musk forming a new party), the political risk premium will continue to suppress risk assets.

2. Key technical support levels:

◦ Bitcoin: $100,000 is a psychological barrier; if it falls below, it may test $95,600; if it stabilizes above $105,000, it is expected to restart the upward trend.

◦ Ethereum: $2,380 is the mid-term bottom; breaking through $2,550 can be seen as a reversal signal.

3. Long-term narrative remains unchanged:

Bitcoin halving cycles, growth in institutional holdings (such as BlackRock increasing its BTC spot ETF holdings), and other fundamental factors still support a long-term bullish logic. Historical data shows that after seasonal adjustments in June, the third quarter often welcomes a rebound window.

IV. Response Strategies!

1. Short-term: Reduce leverage, avoid chasing highs and selling lows; focus on BTC/ETH spot support levels for gradual accumulation opportunities.

2. Mid-term: Diversify into volatility-resistant assets (such as stablecoin wealth management, gold-linked tokens).

3. Long-term: Regularly invest in leading assets (BTC/ETH), participate in low-risk return projects like Binance Launchpool.

Conclusion: Political games and market volatility always go hand in hand, but the resilience of the cryptocurrency market has been repeatedly tested. Binance Guangzhou reminds users: view short-term fluctuations rationally, use tools to hedge risks, and capture certainty opportunities amid uncertainty.