Article source: Talk Li Talk Outside
Today (Beijing time, June 6th), I saw some partners in the group discussing that Musk and Trump have completely torn apart.
So I searched for this big news and found out that Trump continuously posted on his social platform (Truth Social) to attack Musk, as shown in the following image.
These remarks seemed to have angered Musk, and then there was the tweet that many people have seen today, where Musk said that Trump appears in the Epstein files, which is the real reason why these files were not made public. As shown in the following image.
The emotions of these big shots are sometimes hard to understand. The two people who were quite friendly with each other not long ago are now targeting and exposing each other's secrets on the internet. Their visible "war" seems to have directly affected the financial market, with the three major stock indexes falling at the close, and Tesla's stock plummeting 14.26%, as shown in the following image.
1. Trump and Musk's War
This looks like an interesting "war" between the two richest and most powerful people on Earth. Although they are currently only arguing on social platforms, we should not ignore the potential impact this dispute might have, as it could continue to affect the financial market (including the crypto market) in unexpected ways.
In fact, since Trump took office, we have seen his arrogance multiple times, and it seems that a simple sentence (or tweet) from him can cause a market earthquake. But who ultimately gets hurt? It appears to be the vast retail investors.
Continuing to the crypto market, due to the Trump-Musk war, the crypto market also experienced some pullback today, especially Doge, representing Musk, which dropped nearly 10% in a single day, and TRUMP, representing Trump, did the same.
However, as we mentioned in previous articles, the market exists with various uncertainties and opportunities. It is said that some people sensitively seized this opportunity and made money by short selling Doge and TRUMP. But this kind of money is not suitable for most people, so we don't need to be envious. We should continue to manage our positions according to our trading discipline and plan.
In this argument between Trump and Musk, Trump also threatened to cut off federal funding for Musk's related enterprises. If this were to be implemented, it could affect the R&D budgets and policy support of some tech companies, ultimately impacting the development of the tech sector, given that Musk's tech companies have been at the forefront of technology in recent years (including satellite and clean energy deployment).
Currently, the crypto market is not isolated and is significantly influenced by traditional economics (such as the US stock market) and macro conditions. With Bitcoin hovering around historical highs, if this situation continues to develop, coupled with the already fragile macro economic situation, it might lead to further actions by large funds seeking to avoid risks. The tech stock sell-off might continue to spread to the crypto market, causing a new phase of reversal in the already weak market structure. If this continues, the Trump-Musk war could become a black swan event causing a phased market correction this summer.
However, there are currently rumors online that Musk and Trump are considering reconciliation, and Musk himself seems to want to ease the tensions. As shown in the following image.
In any case, what we see might be true, might be false, or might be what others want us to see. The world is composed of various truths and falsehoods.
No matter how the Trump-Musk war develops, for us spectators, we have already experienced too many unbelievable things this year. What we are currently experiencing seems to be a "struggle" between the most influential people globally. Whether it's a conspiracy, a farce, or the trigger for a new crisis, what we need to do is simple: stay alert and protect our positions.
2. Is Cryptocurrency Becoming Trump's Political Weapon?
Last year (2024), the market went crazy due to Trump's crypto-friendly attitude, and Bitcoin successfully broke through the $100,000 historical mark. However, since Trump officially took office, his various statements and actions have brought greater uncertainty to the market.
Looking at the events that have already occurred, Trump seems not only satisfied with trade wars but also wants to build his own (American) crypto empire:
One of the things that surprised many people this year was the US president issuing a token, which was unimaginable before. With the launch of the TRUMP token in January, Trump began to deeply enter the crypto market using his and the White House's influence. In March, he announced the establishment of a strategic BTC reserve and digital asset repository. In April, he directly established a $2 billion stablecoin (USD1 stablecoin issued by World Liberty Financial, with a market value of about $2.18 billion at the time of writing)...
In the past, cryptocurrencies were more often seen as a representation and symbol of freedom, decentralization, and non-governmentalism. However, with the continuous involvement of the most powerful people and major institutions (including pushing for BTC ETF approval), it seems that cryptocurrencies are gradually being controlled by traditional industry giants and used as a new financial weapon.
Although the total market value of the crypto market is currently only $3.2 trillion, this does not prevent Trump and some institutions from making huge profits while continuing to use cryptocurrencies as a long-term new weapon to guide other countries and global people to chase after.
Taking World Liberty Financial (WLFI, a crypto company created and supported by the Trump family) as an example, the USD1 stablecoin they launched can be understood as being supported by the Abu Dhabi government, meaning they received a $20 investment from Abu Dhabi. From another perspective, can we understand that President Trump can simply obtain $2 billion in foreign government funds through cryptocurrencies?
This is happening under the still unclear US crypto regulation. One can imagine that if the US truly passes the stablecoin bill this year (August is a critical time point) and stablecoins gain legal status in the US, they could potentially become Trump's political weapon and global harvesting tool.
Although theoretically, this is certainly good news for the crypto market, as stablecoins are now legal, traditional funds (including qualified private companies that can issue US dollar stablecoins and are supported and protected by federal regulatory laws) can now participate in the crypto market without hesitation, which will to some extent continue to drive up the prices of cryptocurrencies like Bitcoin. However, at the same time, because cryptocurrencies may become a political tool for the United States, this could involve new political and financial games between certain countries, potentially making things more difficult for many retail investors.
I don't know what the crypto market will develop into, but the Bitcoin that once belonged to Satoshi Nakamoto was "rebellious" and advocated complete freedom and decentralization. Currently, it seems that Bitcoin's "rebellious" core is slowly changing, as it appears to be becoming a new tool for Trump (USA), becoming one of the means to achieve his MAGA goal.
The original rules of the game seem to have started changing, and Trump is someone who understands how to play the game better than anyone else. Those who originally hoped that cryptocurrencies would be widely "adopted" now seem to see cryptocurrencies being "occupied" by power and capital.
As for what we should do next, the best choice is still to hold onto our own "pie" and patiently grasp the opportunities of the big cycle. In short, this field remains an invaluable opportunity for many, but will simultaneously become increasingly difficult for many.
That's all for today. The sources of images/data mentioned in the text have been supplemented in the Notion, and the above content is just a personal perspective and analysis, solely for learning and communication purposes, and does not constitute any investment advice.
Article source: https://mp.weixin.qq.com/s/LWAEn_7Zavu3xX7USIhH6Q
