Crypto Bull Run Phase 3 Ignites as Elon Musk Cuts Political Ties – Are You Ready?
Key Takeaways:
- Elon Musk’s public break from Trump’s political orbit removes a major overhang on crypto sentiment.
- Black Swan Capitalist’s Vandell declares the start of Phase 3 of the ongoing crypto bull run.
- Altcoin activity, institutional flows, and Ethereum metrics all point to renewed market acceleration.
Elon Musk’s sudden move to distance himself from Donald Trump has triggered ripples across financial markets—most notably in crypto. Market analysts and on-chain observers, including Black Swan Capitalist’s Vandell, suggest this moment marks the beginning of an aggressive new chapter in digital asset growth. Let’s break down what this means and how Phase 3 of the crypto bull run is taking shape.
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Why Musk’s Exit Signals a New Crypto Era
When Elon Musk distances himself from anything, the market pays attention. But this time, the timing aligns with a broader market shift. According to Vandell, founder of Black Swan Capitalist, Musk’s disassociation from the Trump camp signals a key psychological unlock—especially for institutions previously concerned about regulatory backlash tied to political favoritism.
Now that Elon is officially leaving the Trump administration they can finally move the bull run into phase 3.
It was inevitable either way.
Lock in. pic.twitter.com/4ad6TY8Kvy
— Vandell | Black Swan Capitalist (@vandell33) May 29, 2025
This shift arrives at a moment when the crypto market is already showing signs of strength:
- Bitcoin (BTC) briefly reclaimed $71,000.
- Ethereum (ETH) staking participation just crossed 33 million ETH.
- Whale accumulation in select altcoins like Solana (SOL) and Avalanche (AVAX) is accelerating.
Musk’s move adds fuel to the fire. Without the specter of partisan politics hanging over his influence, institutions are now more willing to re-engage with digital assets, especially as regulatory frameworks begin to solidify in both the U.S. and Europe.
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Institutional Confidence: The Bull’s Real Backbone
Smart Money Is Returning
Over the last week, multiple on-chain signals point to increased institutional participation:
- Wallets holding over $100,000 in BTC have risen by 9% in just 72 hours.
- Bitcoin ETFs saw inflows totaling over $870 million in the third week of May, the third-highest weekly figure in 2025.
- Layer-1 ecosystems such as Sui, Near, and Aptos are seeing double-digit price jumps, indicating a shift toward long-term narratives.
One key driver? Reduced macro uncertainty. With inflation cooling and U.S. Treasury yields falling, risk-on assets are back in vogue—and crypto, especially ETH and high-conviction altcoins, is benefiting.
Sovereign Funds Are Circling
A lesser-known but highly significant detail: according to sources close to Black Swan, several sovereign wealth funds (from the Middle East and Asia) have begun quiet accumulation of large-cap crypto assets. These funds are typically slow to enter, but once committed, they represent massive inflows. Expect Bitcoin and Ethereum to be the primary beneficiaries, with spillover into liquid staking platforms and top-performing DeFi protocols.
Strategic Altcoin Rotation: From Meme Coins to Infrastructure
Altcoins Signal Risk-On Behavior
Phase 3 of the bull market isn’t just about Bitcoin dominance; it’s about diversification. While BTC’s dominance has dipped below 52%, altcoins are exploding in both volume and wallet count:
- Solana (SOL): Up 18% this week, driven by ecosystem growth and strong developer activity.
- Avalanche (AVAX): Whale inflows suggest bets on RWA (real-world asset) integration.
- SHIB & PEPE: While meme coins typically peak early in cycles, this time we’re seeing more wallet diversification, implying longer-term interest.
The market is rotating away from hype toward infrastructure plays. Protocols like EigenLayer, Celestia, and LayerZero are seeing demand from both retail and institutional holders as new narratives—modular blockchains, AI-enhanced consensus, tokenized RWAs—dominate conversations.
Metrics That Matter: What the Data Tells Us
Key indicators confirming the bull run’s momentum:
- Ethereum Staking: Over 33 million ETH is now staked, representing nearly 28% of total supply. Platforms like Lido, Rocket Pool, and Coinbase are reporting record levels of delegation.
- On-Chain Activity: Daily active addresses on Ethereum, Solana, and BNB Chain are up by 12–15% month-over-month.
- TVL Growth: Total value locked (TVL) across DeFi is approaching $110 billion again, a level not seen since early 2022. EigenLayer alone grew by over $2 billion in the past month.
These metrics underscore a renewed level of trust in on-chain protocols. Unlike previous runs fueled by speculation, Phase 3 is underpinned by real capital, real yields, and real usage.
What’s Driving Phase 3: Three Macro Forces
According to Vandell, three core elements define this new cycle:
- Institutional Trust
The BlackRock and Fidelity spot Bitcoin ETFs opened the door. Now, traditional finance (TradFi) is actively deploying capital into staking protocols, tokenized treasuries, and Web3 infrastructure. - Macro Stability
Lower inflation and a dovish Fed are reducing risk aversion. With treasury yields easing, capital is flowing back into tech and crypto. - Innovation-First Market Cycles
This cycle differs from the 2021 mania. Today, investors are focused on blockchain infrastructure and next-gen financial primitives—like liquid restaking, zk-rollups, and composable Layer-2s. Projects that offer utility, scalability, or compliance features are commanding attention and capital.
What’s Next: Eyes on ETH, SOL, and Layer-2s
Traders and analysts alike are watching for:
- Volume surges in ETH and SOL, indicating deeper accumulation.
- Breakouts in Layer-2s like Arbitrum, Base, and zkSync, which benefit from Ethereum’s scaling roadmap.
- Narrative shifts toward AI-integrated chains (like Bittensor) and modular architectures (like Celestia).
New market entrants—especially sovereign funds and multi-strategy hedge funds—are likely to target these assets. Meanwhile, retail interest remains anchored to memecoins, but with signs of more calculated entries.
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