The cryptocurrency market experienced a sharp downturn on June 6, 2025, as Bitcoin fell below the $101,000 level and Ethereum dropped around 6%. This decline followed a public dispute between Donald Trump and Elon Musk, which rattled investor sentiment and triggered a wave of profit‑taking. The total crypto market capitalization slid approximately 4%, settling around $3.33 trillion—a clear sign of widespread retreat.

Market Dynamics: What’s Fueling the Slide?

Political friction between two prominent figures shook confidence, prompting investors to secure gains after Bitcoin briefly flirted with $106,700–$107,000 earlier in the week. Meanwhile, traders are keeping a close eye on Ethereum’s behavior, with significant ETH inflows (~93,484 ETH on June 6) hinting at a potential short‐term selloff if key support at $2,280 fails.

UK & India Regulatory Updates

In the UK, the Financial Conduct Authority (FCA) is actively consulting on lifting its ban on retail investment in crypto‑linked ETNs. This shift reflects a maturing market and a desire to remain globally competitive. If finalized, retail investors could legally access instruments linked to Bitcoin and Ethereum—but with stricter promotional rules and no government insurance.

In India, the Reserve Bank of India (RBI) has issued another warning, stating that unregulated crypto trading “could hamper financial stability and monetary policy.” While no new bills are being drafted, a committee is studying the risks. The RBI’s comments follow a Supreme Court call for clearer crypto regulation.

Institutional Trends & Outlook

Despite the volatility, institutional interest remains steady. On June 6, BlackRock reportedly bought approximately $34.7 million worth of Ethereum, signaling continuing confidence from large‑scale investors. Meanwhile, analysts are awaiting the upcoming U.S. non‑farm payrolls report and key rate‑cut signals from the RBI, which may influence crypto and equity markets alike.

Final Take

Today’s pullback highlights how external events—ranging from political clashes to macro‑economic data—can rapidly shift crypto markets. Key factors to watch in the coming days:

• Bitcoin’s ability to hold above $100K support
• Ethereum’s testing of $2,280 support level
• Regulatory moves from the RBI and FCA
• U.S. jobs data and central bank signals

Would you like an in‑depth breakdown of technical analysis, upcoming ETF developments, or a focus on the Indian policy landscape?