Musk's "American Party" Restructures the Power Landscape: The Rise of "Web3 Politics" and the Global Game of Bitcoin Consensus

1. "American Party" Emerges: Countering the "Big and Beautiful Act" and Bipartisan Monopoly

On July 6, 2025, Elon Musk posted on the X platform stating, "The purpose of the America Party is to give you back your freedom." He announced the establishment of the "America Party." He views the "Great and Beautiful Act" as the catalyst, which extends the 2017 tax reform, cuts green subsidies, and increases defense spending, with an expected additional $3 trillion deficit from 2025 to 2034. Musk criticized the act as "waste and corruption," claiming it suppresses innovation and freedom, especially with the reduction of subsidies for the new energy and technology industries; it is further interpreted by the market as a potential prelude to the Web3 political era. Musk clearly stated that the America Party aims to secure 2-3 seats in the Senate and 8-10 seats in the House of Representatives, leveraging its social influence, substantial funding, and digital community to challenge the bipartisan monopoly.

After the announcement of the establishment of the American Party, the price of BTC soared close to $110,000 on July 6, which the crypto community viewed as Musk's "endorsement effect" for Bitcoin. In response to the question of whether the American Party supports Bitcoin (BTC), Musk confidently replied, "Fiat currency has no hope, so yes." This statement quickly ignited enthusiasm within the crypto community. Against the backdrop of pressure on the dollar's credibility and the loosening of global digital asset regulations, Musk's "American Party" and its stance on Bitcoin not only represent a political gamble but may also signal a deep integration of Web3 technology and political mobilization.

2. Strong Support for Bitcoin: The Intersection of Fiat Currency Crisis and Web3 Politics - Musk's Position on BTC

Musk's support for BTC is closely related to the US credit crisis. Data shows that as of April 3, 2025, the total US federal government debt has reached $36.2 trillion, accounting for 124% of GDP; interest expenses for the fiscal year 2024 have exceeded $1 trillion for the first time, reaching $582.5 billion in the first half of the fiscal year 2025, making it the second largest expenditure item. The high tariff policy of the Trump administration has further exacerbated rising costs, with the core PCE price index expected to reach 3.1% by the end of 2025.

Musk's stance on BTC is not only an economic judgment but may also be an experiment in Web3 politics. Market analysis suggests that the U.S. party may create a "political space for crypto natives," using blockchain technology to achieve decentralized voter mobilization and fundraising. Musk's X platform has already tested blockchain-based identity verification (XID), which may support BTC donations and on-chain voting in the future.

The global context has further strengthened this trend. The U.S. "GENIUS Act" regulates the issuance of stablecoins, the SEC has revoked SAB121 to lower the custody threshold for banks, and Hong Kong's "Stablecoin Regulation" took effect in August, all of which promote the compliance of digital assets. According to reports, BTC ETF saw a net inflow of $770 million last week, and Musk's statements may catalyze more political forces to embrace crypto assets.

​​​​​​​

3. BTC Price and Market Dynamics: Short-term Volatility and Long-term Momentum Price Trends and Technical Analysis

BTC K-line patterns:

The daily chart shows that after a significant price increase on July 6th, there was a slight consolidation with fluctuations on July 7th, and it is currently in a high-level consolidation state.

The hourly chart has recently shown a continuous upward trend, but the candlestick at 12:00 has a long upper shadow, indicating strong resistance above.

Technical indicators:

MACD: The MACD histogram on the hourly chart is gradually shortening, with the fast and slow lines still above the zero axis but showing signs of convergence, indicating weakening momentum; the daily MACD continues with red bars, indicating that the medium-term bullish trend is dominant.

RSI: The hourly RSI has fallen from the overbought area to around 63, indicating a possible short-term adjustment; the daily RSI remains above 70, suggesting that the overall trend is still strong.

EMA: The hourly EMA7, EMA30, and EMA120 moving averages are in a bullish arrangement, with the price currently running close to EMA7; the daily EMA7 and EMA30 are diverging upwards, indicating strong support.

Trading Volume:

The hourly trading volume peaked at 11:00 with 327, and then clearly shrank, indicating that market sentiment has cooled.

The daily trading volume has significantly decreased compared to the previous trading day, indicating an increase in market hesitation.

In the short term, Musk's support for BTC is in a game against the cooling interest rate cut expectations triggered by the June non-farm data (147,000 jobs, unemployment rate 4.1%), and the strengthening of the dollar (DXY) has led to a correction in BTC.

In the long term, institutional inflows, the overall HODL sentiment, and Musk's endorsement support the foundation of a bull market.

Four, Challenges and Prospects

1. Political barriers: The two-party system in the United States is deeply entrenched, and the American party is more likely to play the role of a "disruptor," making it difficult to sustain.

2. BTC Volatility Risk: Although Musk's endorsement has boosted the market, BTC has faced multiple obstacles above 110,000. If it cannot break through, it may retrace again.

3. Regulatory Uncertainty: The U.S. "Digital Asset Anti-Money Laundering Act" may strengthen scrutiny of BTC trading, affecting market sentiment.

V. Conclusion

In the current context where the US dollar's credit is under pressure and digital assets are becoming mainstream, Musk's theory of "fiat currency is hopeless" and support for BTC may become the starting point of Web3 politics. Whether the American party can break the two-party monopoly remains uncertain, but its embrace of BTC has ignited market imagination.

This article is for informational sharing only and does not constitute any investment advice for anyone.

Join our community to discuss the event.

Official Telegram community:

Chat Room: Wealth Group