President Joe Biden’s unexpected announcement to withdraw from the 2024 presidential race has had a noticeable impact on Bitcoin prices, initiating a short-lived recovery phase despite introducing greater market uncertainty. On July 21, Biden declared his withdrawal, which initially caused Bitcoin to dip by 3%. However, within the same day, Bitcoin rebounded by roughly 1.5%, reaching $68,364, its highest level in a month, according to Tradingview data.
US Elections and the Crypto Market
Following Biden’s announcement, Bitcoin’s initial decline was a direct response to the temporary market uncertainty. By the morning of July 22, Bitcoin had increased by 0.9% over the previous 24 hours, climbing above the $68,000 mark. This figure is close to the all-time high of $73,666 recorded in March. The outcome of the US elections is likely to significantly affect the global crypto industry and regulatory outcomes across the world.
On July 23, US Vice President Kamala Harris garnered support from 2,668 delegates, surpassing the threshold needed to secure the Democratic Party’s presidential nomination. However, her stance on cryptocurrency remains unclear, raising questions about potential regulatory scrutiny.
Details on the Subject
Billionaire investor Mark Cuban opined that Harris might be more receptive to technological advancements and cryptocurrencies compared to President Biden. Until Harris clarifies her views on crypto, investors may choose a more cautious approach. Cuban highlighted that the current administration has focused heavily on regulation, and this stance might persist under Harris, which could be less favorable for the crypto market in the short term.
Investor Insights
Key takeaways for investors:
- The current market’s quick reaction indicates high sensitivity to political events.
- Harris’s unclear stance on crypto requires close monitoring.
- Investors may consider adopting a wait-and-see approach until more information about Harris’s policies is available.
- A prolonged regulatory focus under Harris could impact market sentiment.
Prediction markets still show strong support for former President Donald Trump as the favored candidate to win the upcoming elections. According to Polymarket, more than 62% of users predict a Trump victory in November, while only 35% support Harris.