According to Fox News, a federal judge is scrutinizing whether the recent deployment of the National Guard in Los Angeles may violate the Posse Comitatus Act (source: Fox News, June 21, 2025). This heightened legal uncertainty could lead to increased volatility in the cryptocurrency market, as traders often react to political and legal instability in major US cities. Historically, similar events have triggered risk-off sentiment, influencing Bitcoin (BTC) and Ethereum (ETH) prices due to concerns about domestic unrest and its potential effect on US regulatory action. Traders are advised to monitor legal developments closely, as further escalation or judicial intervention may impact both traditional and digital asset markets.

According to Fox News, the ongoing dispute between former President Trump and California Governor Newsom centers around the Posse Comitatus Act and the potential federal deployment of the National Guard in Los Angeles (source: Fox News, June 9, 2025). This legal controversy has heightened political risk, which is closely monitored by cryptocurrency traders as periods of domestic uncertainty often lead to increased Bitcoin and Ethereum volatility. Historical data shows that major political events in the U.S. can trigger short-term price swings in crypto markets due to shifts in investor sentiment and risk aversion (source: CoinDesk, 2024). Traders should watch for rapid market sentiment changes and potential price volatility in major digital assets linked to U.S. political developments.