According to the latest revelations from the Wall Street Journal, Elon Musk has quietly slowed down the establishment of the third party, America Party. Previously, Musk declared war due to fierce differences with Trump over the tax bill, even threatening to overturn supporters of Trump, but now the plot has taken a dramatic turn! Insiders reveal that Musk is refocusing on his companies Tesla and SpaceX and is wary of the risk of diverting Republican votes—this shift could trigger a new wave of capital siphoning in the cryptocurrency market!#马斯克的特斯拉只支持狗狗币支付
1. Political ambitions frustrated? No, this is Musk's signal for capital relocation!
1. The capital anxiety behind the return to the real economy:
The root of Musk's break with Trump is the fiscal deficit crisis. Musk criticized Trump's tax bill as leading America to bankruptcy, but political games come at a cost; Tesla's stock price plummeted over 50% due to friction between the two, and government subsidy contracts faced public threats from Trump. Now Musk's retreat indicates that rather than burning money in politics, it is better to stick to the foundation of the real economy—cryptocurrency, as a long-term hedging tool for Musk, may welcome a massive influx of liquidity!
2. Secret communication with Vice President Vance:
Musk is trying to maintain contact with the moderate Republican leader J.D. Vance, exposing his strategy of not giving up, securing policy influence through behind-the-scenes deals. Vance is known for supporting technological innovation, and if Musk successfully lobbies, it may promote favorable regulatory frameworks for cryptocurrency, such as ETF expansion and DeFi legalization. The crypto world needs to be wary of policy arbitrage opportunities!
2. The three major nuclear explosion-level impacts on the cryptocurrency market
1. Musk's concept coins may face a violent surge:
Historical data shows that when Musk focuses on business operations, he often shifts public pressure through cryptocurrency hype, such as the Dogecoin surge in 2021. If his political energy returns to Tesla/Twitter, DOGE, BTC Tesla holdings, and even X platform ecosystem coins may become the new narrative focus. Especially, the recent spike in Bitcoin's option panic index to 12% indicates that the market urgently needs catalysts to reverse sentiment!
2. Explosion in the demand for risk hedging from trillion-level capital:
Musk's party plans are stalled, confirming the increasing uncertainty in American politics, with the struggle between Trump and Musk intensifying. Traditional capital may accelerate its influx into cryptocurrencies to hedge risks—the digital gold attribute of Bitcoin will be further reinforced. Deribit data shows that panic selling of Bitcoin has reached extreme levels, similar to the 40% rebound after the April crash may reoccur!
3. A shift in the regulatory game
After Musk retreats, the Republican Party's discourse on technology policy may tilt toward the Vance faction. If Musk pressures through business alliances, the regulatory deadlock on cryptocurrencies, such as the SEC's classification of Ethereum, may break. Especially, the combination of SpaceX's Starlink and blockchain underlying technology will create a new imaginative space for decentralized networks!
Brother Lei's analysis:
Musk originally wanted to create a new party to oppose Trump but has now backed down! Why? Because he realized that engaging in politics is too costly and easily offends people, it's better to return to managing his Tesla and Twitter. This is excellent news for us in the cryptocurrency space!
In simple terms, three points:
1. Musk is no longer involved in politics; where will the money from his wealthy fans go? A portion is definitely going back to the cryptocurrency market! Remember 2021? Just a Dogecoin meme from him could send the price soaring by 50%. Now that he is returning to the tech circle, Dogecoin and Bitcoin, his favorites, will certainly benefit!
2. He is now secretly collaborating with Vice President Vance, paving the way for cryptocurrency! Vance is an insider in the tech circle, and future policies will definitely consider cryptocurrencies. It's like a troublemaker in school suddenly becoming good friends with the class leader; life will surely be much better from now on!
3. The most practical thing is that the American political scene is a mess, and many wealthy individuals are thinking about how to protect their wallets. Last time when Trump and Biden clashed, Bitcoin surged by 20% in a single day. This time, with Musk and Trump at odds, the same scenario may play out again!
Brother Lei's perspective:
Every time the big shots clash, it's an opportunity for us small retail investors to make money. Last year, when Musk and Buffett were at odds, I had my fans preemptively invest in Dogecoin and made enough for an iPhone in a week. This opportunity is here again! But be careful, don't go all in right away! You can start with a small amount in Dogecoin and Bitcoin, and when Musk really tweets, then increase your position. Remember, news drives expectations, and when it lands, it's time to sell! Musk changes his mind faster than flipping pages; he might say tomorrow that he wants to get into politics again. So we need to set stop-losses and take profits without being greedy!
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