When politics trembles, the crypto market shakes! This ruling by the U.S. judge strikes at Trump but may have hit the crypto market hard!
Real Impact: Policy Uncertainty = Market Volatility Catalyst
A U.S. judge last night extended the injunction, preventing the Trump administration from withholding federal funds from 'sanctuary cities' (involving over 30 cities including Boston, Chicago, and Los Angeles). This seems like a dispute over immigration policy, but it actually exposes the fierce confrontation between the U.S. judiciary and executive—what the crypto market fears most is this kind of 'policy tug-of-war'!
Why is the crypto market in a panic?
Capital Flow Undercurrents: The dispute over federal funding may affect local economies; if it triggers market concerns about the stability of the U.S. government, funds may flow from U.S. stocks to safe-haven assets (like gold, BTC).
2.
Policy Chain Reaction: As political games intensify before the 2020 election, any judicial ruling could be countered by the Trump team, leading to more radical policies (e.g., suppressing tech giants → indirectly affecting the crypto industry).
Historical Case Verification: When Trump threatened to sanction Iran in 2019, BTC soared 20% in a single day; if political risks escalate this time, ETH/BTC may experience sudden spikes and drops again.
Short-term (1-3 days): The market may overreact; if ETH breaks below the 4583 support, consider buying the dip in batches (referencing the scenario where ETH dropped and then rose 8% after the SEC delayed ETF approval in early August).
Medium-term (1 month): With frequent political black swan events before the November election, it is advisable to hold no more than 50% positions and keep enough ammunition to deal with sudden crashes.
Last September, when California clashed with the federal government's environmental policies, ETH/USDT briefly plummeted 12%, but within 48 hours, Vitalik Buterin made a statement + whales bought the dip, causing a 23% price rebound—political negatives often become a feast for smart money!
Tonight, keep an eye on these two signals!
1.
After U.S. stock markets open, if the Nasdaq performs poorly, tech stocks drop → 80% probability that the crypto market will follow suit.
2.
If Trump posts on Twitter attacking the ruling, BTC may fluctuate instantly by over 5%.
(Follow me, reveal: How whales use political events to 'cut leeks'#ETH创历史新高 )
