On July 1, the prediction platform Kalshi stunned the financial world by announcing that the probability of Elon Musk forming his own political party – tentatively called the “America Party” – has surged to 41%. This is an unprecedented high, after Musk hinted at his intention to form a party in recent posts on X (Twitter).
This news has shaken the financial markets, with Bitcoin (BTC) being one of the assets heavily impacted. Immediately after the news, BTC's price dropped nearly 2% due to concerns about political instability and potential monetary policies if Musk seriously engages in politics.
Investors are wary that Musk's entry into politics could disrupt the market, especially if he opposes the central banking system or strongly supports cryptocurrencies – which has previously caused significant BTC price volatility.
While some see this as a long-term opportunity for Bitcoin, in the short term, the storm has begun.
Source: https://x.com/Kalshi/status/1940037162394612090
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