The President of the United States, Joe Biden, withdrawing from the presidential elections helped Bitcoin prices enter a brief recovery phase despite creating additional uncertainty in the market. On July 21, Biden announced that he was withdrawing from the 2024 presidential race. Following the news, Bitcoin initially declined but then showed a recovery of approximately 1.5% within the same day, reaching $68,364, the highest level in a month according to Tradingview data.
US Elections and the Crypto Market
Bitcoin initially dropped by 3% following Biden’s announcement but later recovered. This was an immediate reaction to the temporary uncertainty in the market. On the morning of July 22, it increased by 0.9% over the previous 24 hours, surpassing $68,000. This figure is close to the all-time high of $73,666 reached in March.
The outcome of the US elections could have significant impacts on the crypto industry in the world’s largest economy and regulatory outcomes in other parts of the world. On July 23, US Vice President Kamala Harris secured the support of 2,668 delegates, surpassing the threshold needed to secure the Democratic Party’s presidential nomination. However, Harris’s stance on crypto could be a wildcard for the crypto industry, potentially inviting more regulatory scrutiny:
“Harris’s stance on cryptocurrency is not well-documented, making it difficult to predict with certainty. However, Harris’s political positions indicate a focus on consumer protection and financial regulations, which could mean continuous scrutiny of the crypto market.”
Details on the Subject
In response to this process, billionaire investor Mark Cuban stated that Harris might be more open to technological innovations and cryptocurrencies than President Joe Biden. Until Harris provides more clarity on her views regarding crypto, investors may adopt a more passive approach:
“Investors may adopt a wait-and-see approach until Harris’s policies become clear. The current administration has been relatively cautious about crypto, focusing on regulation. This stance continuing under a Harris administration may not be immediately positive for the market.”
However, prediction markets continue to support former US President Donald Trump as the candidate most likely to win the elections. More than 62% of Polymarket users predicted that Trump would win the November elections, while only 35% predicted Harris.
