On July 7, Musk responded on the X platform to the question, 'Will the American party embrace Bitcoin?' by stating, 'Fiat currency has no hope, so yes.'
This statement instantly ignited the market:
Bitcoin broke through $110,000, rising over 0.7% in 24 hours, ETF funds poured in, and retail investors excitedly discussed, 'Musk has taken us to new heights again.'
Behind Bitcoin's surge: a dual boost from policy and traffic
Recently, the U.S. designated Bitcoin as a reserve asset, with giants like BlackRock and Grayscale attracting over $4 billion in ETF funds.
Musk's endorsement at this moment is akin to adding a social media influencer's filter to Bitcoin's 'legitimacy'—policy needs confidence, Musk needs topics, and it’s a perfect match.
Institutional buying spree, Bitcoin becomes digital gold
MicroStrategy holds 597,000 BTC, valued at over $63 billion;
BlackRock's ETF size has surpassed $75 billion, showing astonishing control;
Even Solana's ETF has launched, though actively traded, the SOL price remains indifferent.
The signal conveyed by the market is very clear: institutions only buy certain assets, not conceptual stories.
Altcoins fall silent, is 'decentralization' no longer trusted?
Ethereum dropped below $2600, Solana dropped below $150;
Bitcoin's market share rose to 64.6%, while the overall market value of altcoins only increased by 3%.
The core issue for altcoins is: the storytelling has faltered.
Institutions seek safety and compliance, while the technical risks and regulatory uncertainty of altcoins are gradually marginalizing them.
Musk's 'interstellar currency' dream is both a trend and a strategy
He mentioned that 'Mars colonies might use Bitcoin,' which sounds like hype, but is necessary for him personally:
Tesla needs a new story;
SpaceX needs financial support;
The crypto space also requires a 'passionate narrative' to reignite faith.
Musk's statement this time is not just hot air but an accelerator for institutional trends.
Retail investors should look at the data of Bitcoin ETF's capital inflow and the reality of market share, rather than blindly believing in 'altcoin comebacks.'
