Circle IPO, Musk and Trump Split, Ethereum ETF Attracts $300 Million: Capital Concentrates on Stablecoins and Mainstream Assets

This week’s trends in the cryptocurrency market were influenced by multiple intersecting events, including Circle’s official IPO, liquidity changes in Ethereum and Bitcoin ETFs, the divided stance of U.S. political figures on crypto assets, and the public feud between Musk and Trump. These events not only affected market sentiment but also had a tangible impact on the capital flow towards stablecoins, meme coins, and mainstream assets. Although the overall market has not yet shown a clear trend reversal, signs of structural capital allocation have begun to emerge, and the regulatory environment and core narratives surrounding crypto assets are gradually shifting.

Circle IPO Releases Policy Dividend Signals, Stablecoin Sector Enters Compliance Acceleration

Circle (CRCL) stock surged 168% on its IPO day | Source: CNBC
On June 5, Circle, the issuer behind the stablecoin USDC, officially listed on the New York Stock Exchange under the ticker symbol “CRCL,” marking a milestone for the stablecoin industry. The IPO was priced at $31 per share, significantly higher than the initially expected range of $27-28, opening at $69 and reaching an intraday high of $103.75, closing at $83.23, with a first-day increase of 168%. This “25 times oversubscribed” IPO successfully raised $1.05 billion, and subsequent trading continued to be strong, rising to $107.70 on the second day.

Circle’s successful listing carries multiple strategic implications. As the issuer of USDC (the second-largest stablecoin by market capitalization, exceeding $60 billion), its listing brings compliance endorsement to the entire stablecoin industry, symbolizing regulatory recognition of stablecoin infrastructure. This move also instills confidence in the IPO plans of exchanges like Kraken and Gemini, with NYSE President Lynn Martin calling it a “bellwether for the IPO market in 2025.” Furthermore, Circle’s listing provides a direct channel for institutional capital to enter the stablecoin economy, with notable institutions like ARK Investment Management indicating plans to invest $150 million.

Policy-Level Dividends Begin to Emerge

The U.S. Senate has resumed discussions on the stablecoin bill, and the regulatory framework discussions among the Treasury and the Federal Reserve have once again heated up. JPMorgan estimates that the stablecoin market size will grow to $500 billion to $750 billion in the coming years, with USDC potentially becoming one of the core candidates for a future digital dollar. In contrast, the current market leader, Tether (USDT), still faces controversies regarding transparency and asset backing, suggesting that policy advantages may gradually shift towards Circle’s camp.

Musk and Trump Clash, Cryptocurrency Market Value Shrinks by About $80 Billion

At the beginning of June, a public rift developed between Musk and Trump. The catalyst for the conflict was Musk’s strong criticism of the large tax and spending bill promoted by Trump, which he called a “disgusting atrocity” on the X platform, arguing that it would further exacerbate America’s $3.62 trillion debt burden. Trump publicly expressed his disappointment during a meeting in the Oval Office on June 5, stating, “We used to have a good relationship, but I don’t know if it will continue.” Musk immediately fired back, claiming, “Without me, Trump would lose the election.” The conflict escalated quickly, with Trump threatening to “terminate Musk’s government subsidies and contracts,” while Musk publicly supported Trump’s impeachment.

Bitcoin price fell to a low of $100,436 on June 5 | Source: CoinMarketCap
This public fallout between the political and business titans had multifaceted impacts on the cryptocurrency market. On June 5, Bitcoin’s price fell from its high to a daily low of $100,436 (UTC), with a daily decline of about 3%, leading to a total market capitalization shrinkage of around $80 billion. The more profound impact lies in the structural aspect of the market; Musk, as a significant opinion leader in the cryptocurrency space, saw his relationship with the government fracture, raising doubts about future policy support, especially regarding the promotion of Bitcoin as a strategic reserve asset and the influence on crypto-friendly regulations significantly weakened.

Dogecoin price plummeted by 8.82% on June 5 | Source: CoinMarketCap
The meme coin sector suffered the most. Dogecoin (DOGE), closely associated with Musk, saw its price drop from around $0.19 to $0.16 during the conflict, a decrease of approximately 12.5%. Similarly, the meme coin concept associated with Trump, TrumpCoin, faced pressure, reflecting the vulnerability of such assets to political narrative disruptions. In contrast, mainstream assets like Bitcoin and Ethereum exhibited stronger resilience, highlighting institutional investors’ confidence in infrastructure-based crypto assets, which remained fundamentally unaffected by political turmoil. Tesla’s stock plummeted by 14.3%, wiping out about $150 billion in market value, and Musk’s personal net worth shrank by $34 billion, reflecting market concerns over the outlook for government contracts.

Bitcoin and Ethereum ETF Capital Flows Exhibit Divergence, Market Structure Enters Adjustment Period

Source: Farside Investors
Despite short-term disturbances from political and economic events, the ETF market has shown a complex pattern of capital flows. According to data from Farside Investors, Bitcoin ETFs experienced significant volatility from late May to early June, with BlackRock’s Bitcoin ETF recording the largest single-day outflow of $430.8 million on May 30, ending a 31-day inflow trend. However, according to Bloomberg data, Bitcoin ETFs performed strongly overall in May, with IBIT achieving its largest monthly inflow since its launch in January 2024, attracting over $6.35 billion in net inflows for the month, bringing total assets under management to over $71 billion.

In stark contrast, Ethereum ETFs displayed entirely different performance. According to Farside Investors data, BlackRock’s Ethereum ETF recorded $77.06 million in inflows on June 3, contributing to a total of $109.4 million in funding for Ethereum ETFs on that day. Since its launch, BlackRock’s Ethereum ETF has seen cumulative inflows exceeding $4.73 billion, with net inflows recorded for 12 consecutive trading days since May 15. This rotation of capital reflects increased investor expectations for an “Ethereum season,” with Ether’s price rebounding strongly from $1,800 in early May to over $2,600, marking a monthly increase of 45%, primarily driven by the successful implementation of the Pectra hard fork upgrade and optimistic market expectations regarding tokenization trends.

From a technical perspective, Bitcoin’s Relative Strength Index (RSI) remains in the range of 68-72, and the Fear and Greed Index fluctuates around 65, reflecting a cautiously optimistic market sentiment. Bitcoin has established significant support at $108,000, with resistance levels in the range of $110,800 to $112,000. ETH is forming a bullish flag pattern, and analysts believe that if it breaks through the psychological barrier of $3,000, the next target will be in the $3,500 range. Institutional investors are demonstrating increasingly refined asset allocation strategies, shifting from simple Bitcoin allocations to a dual-core allocation model of Bitcoin and Ethereum.

Conclusion: Cautious Optimism Amid Structural Changes

This week’s market exhibits a subtle “structural optimism,” with mainstream assets maintaining relative strength supported by policy dividends and institutional allocations, while meme coins and politically themed coins are experiencing capital rotation and adjustment. Circle’s IPO represents formal recognition from regulators of the stablecoin infrastructure, paving the way for future crypto compliance; at the same time, the differentiated capital flows into ETFs and the continuous rebound in Ether prices provide substantial signals regarding the market’s maturation.

However, political uncertainty and narrative fragmentation continue to exert pressure on certain asset classes. The conflict between Musk and Trump serves as a wake-up call for the market, reminding investors to discern the gap between narrative and fundamentals. Overall, technical indicators and market sentiment are in a “healthy but cautious observation” range, and whether the market can continue to reach new highs will depend on U.S. economic data, the review progress of Ethereum ETFs, and the evolution of the political landscape.

Against this backdrop, investors are advised to focus on the intersection of capital flows and narrative evolution, maintaining high sensitivity to macroeconomic and policy signals while adopting flexible strategies to respond to market rotations. Mainstream assets still have room for performance, but the timing of entry and holding structure needs to be designed more cautiously. The current market is in a crucial transition period from politically driven to fundamentally driven, and this transition itself carries new investment opportunities and risks.

About BingX

BingX, established in 2018, is a leading global cryptocurrency exchange, providing a diverse range of products and services including spot and derivatives trading, copy trading, and asset management to over 20 million users worldwide. In 2024, BingX also became the official partner of Premier League team Chelsea Football Club, showcasing its brand’s international expansion.

The platform regularly offers forecasts on mainstream cryptocurrencies such as Bitcoin price predictions and Ethereum price analysis to meet the varying needs of users from beginners to professionals. BingX is committed to creating a trustworthy trading environment, providing innovative tools and features to enhance users’ trading capabilities.

BingX’s official community gathers users from diverse backgrounds, providing daily updates on market information, strategy analysis, and practical insights, as well as sharing educational content and useful tools from time to time. Join now to watch the market, learn trading, and access a comprehensive intelligence platform.

BingX Traditional Chinese Official Community

Risk Warning

Cryptocurrency investments are highly risky, and their prices can be extremely volatile. You may lose all your principal. Please assess the risks cautiously.