💥Crypto’s Political Earthquake: Musk, Trump, and a $1B Liquidation

📆 Week of June 2, 2025

🛰️Hey Nebulites,

This week was a brutal reminder that in crypto, price isn't everything — but it reacts to everything.

We saw:

• Billionaire drama wipe out $1B in leverage overnight

• A potential regulatory turning point at the SEC

• Bitcoin miners doubling down with ATH hashrates

• JPMorgan expanding crypto-backed loans

• South Korea going bullish on crypto... while impeaching a president

Add macro tensions and political chaos, and you’ve got a market where one tweet can tank a billion in open interest.

Let’s unpack the 5 biggest stories — and what they mean for your next move.

📬 This Week’s Lineup:

💥 Elon vs. Trump: The $1B Crypto Liquidation Bloodbath

⚖️ The SEC pivots to real policymaking — goodbye enforcement-only era?

🏦 JPMorgan accepts Bitcoin ETF shares as loan collateral (yes, really)

🇰🇷 South Korea’s new president is betting big on crypto reforms

⚡ Bitcoin hashrate hits ATH — a hidden bullish indicator?

🎁 CHECK OUT OUR REFERRAL PROGRAM (Details at the end👇)

💥 Chapter 1: Elon vs Trump: The $1B Crypto Liquidation Bloodbath

Crypto didn’t crash because of bad inflation numbers. It didn’t tank because of a Fed hike.
It nosedived because two of the most powerful men on the planet decided to brawl — publicly — on X.

Here’s the play-by-play:

• It started with Musk calling Trump’s new tax-and-spending bill a “disgusting abomination.”

• Trump fired back, threatening to revoke government subsidies and contracts for Musk’s companies — and publicly downplaying his influence.

• Then it escalated hard. Musk implied Trump had ties to Jeffrey Epstein. The internet lost its mind.

What happened next?

• Sentiment turned instantly. Markets were already over-leveraged. The feud added uncertainty, panic, and chaos.

• BTC dropped to ~$100K. ETH, DOGE, and the whole market followed.

• $1 billion in long positions were liquidated as margin calls triggered a classic cascade of automated sell-offs.

It wasn’t about fundamentals. It was about fragility.

The market was stacked with leverage like a Jenga tower — and Musk shoved it.

🧠 Nebular Take

This wasn’t just a feud. It was a reminder: when retail and whales are over-leveraged and sentiment is frothy, any external shock — even political drama — can trigger mass liquidation.

🧱 Chapter 2: SEC Finally Promises to Stop Throwing Lawsuits Like They're T-Shirts at a Concert

The SEC just did something unthinkable… it decided to actually follow the rules.

On June 3, SEC Chair Paul Atkins told a Senate subcommittee that crypto regulation will now be handled via “notice and comment” rulemaking — not through surprise lawsuits, vague threats, or whatever Gary Gensler’s playbook was.

Let’s break it down:

🧠 From "Regulation by Ambush" to “Rules You Can Read”

• The SEC’s new approach: clear, written rules through proper channels.

• Atkins emphasized that lawsuits ≠ policymaking and vowed to stop shaping crypto law through courtroom brawls.

• The focus is shifting to “fit-for-purpose” standards for crypto firms, rather than retrofitting 1930s securities laws.

Translation: We’ll still crack down on scams, but we won’t treat every startup like they committed wire fraud.

🔍 What Changes Now?

• Staking? Not a security (per recent SEC staff guidance).

• Token issuance, custody, and trading? Getting their own set of actual rules.

• Crypto Task Force? Dropping a full report in the next few months.

• FinHub? Being dismantled. Atkins thinks innovation should be baked into the whole SEC, not just one small office.

And no, Atkins didn’t fully answer when asked if exchanges could handle both securities and crypto — but hinted at something more industry-friendly.

🧠 Nebular Take:

This is the most constructive stance the SEC has had on crypto in years. Rule clarity could unlock massive growth for US-based firms, reduce legal uncertainty, and send a green light to institutional capital. If you're building, now’s the time to start gearing up — before that first report drops.

⛏️ Chapter 3: Bitcoin Hashrate Hits ATH — and Yes, You Should Care

When people hear “Bitcoin hashrate,” their eyes usually glaze over like they’ve just opened a PDF titled “Terms & Conditions.”

But here’s the deal:
Hashrate ≠ boring.
Hashrate = the pulse of the Bitcoin network. And this week, that pulse just hit an all-time high.

🧠 Wait, What’s a Hashrate Again?

Think of hashrate as the number of computers plugged into the Bitcoin network, grinding 24/7 to validate transactions and earn BTC.

More hashrate = more miners = more competition
More competition = higher costs to mine BTC
Higher costs = people usually back off…

Except right now, they’re not. Hashrate is still climbing. That tells us something big.

🤔 What Does This Actually Mean?

Miners aren’t masochists. They're profit-chasers. So why are more of them joining the party when it’s getting more expensive to mine?

Because they’re betting big on Bitcoin’s price going higher.
Simple as that.

This isn’t just nerdy data — it’s a sentiment indicator. When hashrates surge, it often signals long-term confidence from those closest to the network.

They’re not YOLO-ing in like retail buyers. These are the people running the plumbing of Bitcoin — and they’re scaling up.

📊 TL;DR:

• Hashrate = ATH

• Mining is getting more expensive

• Miners are still going all in

• ➡️ They expect BTC to go higher.

🧠 Nebular Take:

When the people who understand Bitcoin best — the miners — start making long-term bets, pay attention. You don’t need to be a mining expert to read between the (hash)lines. This is quiet accumulation season. Don’t be the guy showing up after the fireworks start.

🏦 Chapter 4: JPMorgan Now Accepts Bitcoin ETFs as Collateral — Did Hell Just Freeze Over?

If you told us in 2017 that JPMorgan would one day accept Bitcoin ETFs as loan collateral, we would’ve laughed, choked on our coffee, and blocked you.

But here we are.

📢 The News:

JPMorgan Chase — yes, Jamie Dimon’s Bitcoin-hating megabank — just announced it will now:

• Let clients use shares of spot Bitcoin ETFs (starting with BlackRock’s IBIT) as collateral for loans

• Count Bitcoin ETF holdings toward your net worth and liquidity when assessing credit

• And slowly expand this policy to include more ETFs over time.

In other words: BTC ETFs = Stocks & Bonds, as far as JPMorgan’s lending division is concerned.

Let that sink in.

🤔 Why This Matters:

• 💼 It’s not just access. This is validation. JPMorgan is formalizing crypto’s place in wealth management.

• 📈 Leverage just got a lot easier. Want a loan backed by your Bitcoin ETF? Done.

• 🧾 No direct custody = lower risk for banks. But still gives clients BTC exposure.

So, even if Jamie Dimon still thinks Bitcoin is “worthless,” his bank now thinks your Bitcoin ETF is worthy collateral. Call it schizophrenic finance, but it’s progress.

🧠Nebular Take:

This is how crypto goes mainstream — not through memes, but through mortgages. When TradFi starts integrating BTC into everyday banking infrastructure, we’re no longer in the early innings. We’re in Act II of adoption.

And if this is the new normal, other banks will follow fast. It’s no longer just about owning Bitcoin — it’s about putting it to work.

You reading this with a spot ETF in your brokerage account?
Congratulations, your Bitcoin just got a promotion.

🇰🇷 Chapter 5: South Korea’s New President Is Pro-Crypto… and On Trial Next Week

If we told you that South Korea’s new president:

• Supports Bitcoin ETFs ✅

• Wants the national pension fund to invest in crypto ✅

• Plans to launch a won-based stablecoin ✅

• And is on trial next week for alleged campaign violations… 🧑‍⚖️

You’d think we were describing a Netflix political thriller. But no — welcome to President Lee Jae-myung’s first week on the job.

👤 From Factory Floor to Crypto-Friendly Floor Leader

Lee Jae-myung isn’t your typical president. Raised in poverty, he went from child laborer to human rights lawyer — and now sits at the top of one of the most influential digital asset markets in the world.

While his June 4 inauguration speech avoided direct mention of crypto, Lee campaigned on bold digital asset reforms, including:

His rise has energized Korea’s crypto industry, long mired in red tape and dominated by a few exchanges.

But there’s a catch.

⚖️ A President… On Trial?

Lee steps into office with a legal cloud hanging over him. He faces ongoing investigations related to:

• Campaign funding irregularities

• Real estate scandals

• And even an alleged connection to illegal North Korea funding

His first court date? June 18 — just two weeks after inauguration. The twist? It’s unclear whether his presidential immunity covers cases that were already in motion before he took office. Legal scholars are split.

And just to up the drama: the last president was impeached after declaring martial law. No, seriously.

🧠Nebular Take

Lee Jae-myung might be the most pro-crypto head of state outside El Salvador. But South Korea isn’t El Salvador — it’s a $1.7 trillion economy with some of the world’s most active retail crypto traders and major institutional muscle on the sidelines.

His proposals — crypto ETFs, pension funds, and regulatory clarity — are what the U.S. has been dragging its feet on for years.

Still, the political noise (trials, Beijing ties, constitutional reform talk) could delay the timeline. Or accelerate it, if Lee wants to cement a reformist legacy early.

One thing’s clear: Korea is back on the crypto map. And if ETFs and pensions start buying in — it’s not just bullish for Korea. It’s bullish globally.

Stay tuned. The next crypto supercycle might come with a K-drama subplot.

💡 Tip of the Week: Follow the Institutions, Not the Noise

JPMorgan is now accepting Bitcoin ETF shares as loan collateral. That’s not retail hype — that’s Wall Street plugging crypto into traditional finance.
Nebular Take: When TradFi builds bridges to crypto, it’s a green flag. Lean into high-quality, regulated exposure when big players do.

🤡Memes of the week:

✅ Wrap-Up

Here’s what this week taught us:

• Billionaires fighting can disrupt the market (a lot!)

• Institutions are no longer flirting with crypto. They’re onboarding it into their balance sheets.

• Regulators are shifting from slap-fights to rulebooks.

• Governments are moving from bans to adoption strategies.

• And miners — who see BTC as a business, not a bet — are doubling down.

The headlines may look slow. But under the surface?
Crypto is becoming infrastructure. Quietly. Irreversibly. Globally.

See you next week

– Daniel
Founder, Nebular

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.