TLDR
- President Joe Biden has withdrawn from the 2024 presidential race.
- Bitcoin’s price initially dipped but quickly recovered following the announcement.
- Some analysts believe Trump’s increased chances of winning could benefit crypto assets.
- The news caused significant liquidations in crypto markets, with $67 million in long positions liquidated within 30 minutes.
- Analysts caution it’s too early to predict a definite Trump victory or its impact on crypto.
President Joe Biden has withdrawn from the 2024 presidential race, sending ripples through the cryptocurrency markets.
The announcement on Sunday, July 22, led to swift price movements and significant market liquidations.
Following Biden’s withdrawal, Bitcoin’s price experienced a quick dip, falling 2.8% to $65,800. However, the world’s largest cryptocurrency bounced back rapidly, gaining over 3.6% shortly after.
This volatility triggered substantial liquidations in the crypto derivatives market. Within just 30 minutes of the news breaking, nearly $67 million worth of leveraged long positions were wiped out.
The market’s reaction didn’t stop there. Over a 12-hour period, more than $134.5 million in both long and short positions were liquidated.
Bitcoin accounted for $43.8 million of these liquidations, while Ethereum saw $31.1 million wiped out. Most of these liquidations occurred on major exchanges like Binance and OKX.
Some analysts view Biden’s exit as potentially positive for the crypto sector. Josh Gilbert, a market analyst at eToro, described it as a “win for crypto assets.”
He suggested that former President Donald Trump’s improved chances of reelection could provide a “huge boost” to the asset class.
Trump has recently made cryptocurrencies a key part of his campaign, promising to end what he calls the Biden administration’s “war on crypto.”
However, not all experts are convinced that Biden’s withdrawal will lead to an immediate surge in crypto prices. Pav Hundal, an analyst at Swyftx, warned that it would be difficult to directly link Biden’s exit to the current bounce in the broader crypto market. He advised investors to remain cautious and not get overly excited in the short term.
The race for the Democratic nomination is now wide open. Vice President Kamala Harris is considered a likely replacement for Biden as the Democratic candidate.
Those who think Trump/Vance will win by a landslide are getting ahead of themselves. The American public doesn’t trust Trump after the events of Jan 6th. I was no fan of Biden or Kamala but Dems could still nominate Newsom, Michelle Obama or another leading Dem to be their… https://t.co/xqbq5NPpmH
— Gary Black (@garyblack00) July 21, 2024
However, some speculate that other prominent Democrats like Gavin Newsom or Michelle Obama could potentially enter the race.
Looking ahead, the crypto market may face additional factors that could influence prices. The upcoming launch of spot Ethereum ETFs in the U.S. is seen as a potential catalyst for growth across the market.
Additionally, some analysts speculate about bold moves a crypto-friendly president might make, such as announcing Bitcoin as a strategic reserve asset for the U.S. government.
As the political landscape shifts, the cryptocurrency market continues to react to these developments. While some see potential benefits for crypto under a possible Trump presidency, others caution against making early predictions.
The coming months are likely to bring more clarity as the election race unfolds and its potential impact on the crypto sector becomes clearer.
