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Bitcoin Briefly Tops $68K as Biden Dropout Riles Up Crypto Bulls

Jul 21, 2024
  • Bitcoin briefly surged above $68,000, driven by positive U.S. election predictions, before settling around $67,500 during early Asian trading hours on Monday.
  • The broader crypto market, as represented by the CoinDesk 20 index, saw a 1.25% increase.
  • President Biden’s announcement of not running in the upcoming election was seen as potentially favorable for the digital asset industry, regardless of the election outcome, among some traders.
As a seasoned crypto investor with a few years of experience under my belt, I have seen my fair share of market fluctuations and election-driven price movements. The latest news surrounding the U.S. elections and the potential impact on Bitcoin (BTC) and the broader crypto market has piqued my interest once again.At the onset of Asian market hours on Monday, Bitcoin (BTC) experienced a brief surge above $68,000, only to retreat to $67,500. This price fluctuation came amidst a surge in optimistic sentiment among traders, fueled primarily by positive expectations surrounding the U.S. election outcome.
The prices of major cryptocurrencies surged due to Bitcoin’s robust performance. Ether (ETH) reached a new peak at $3,500, and Cardano’s ADA and Solana’s SOL experienced significant growth, with increases of up to 5%. Dogecoin (DOGE) displayed a remarkable rise of over 8%, but later gave back some of its gains.

The widely followed CoinDesk 20 Index, which represents the largest cryptocurrencies excluding stablecoins, experienced a gain of 1.25%.

Beginning late Sunday, Bitcoin’s value surged as incumbent U.S. President Joe Biden announced via a post that he would not interfere in the upcoming November elections. Consequently, the probability of Republican candidate Donald Trump decreased from 71% to 65% on crypto betting platform Polymarket during Asian morning hours on Monday. Simultaneously, Vice President Kamala Harris’ odds increased from 16% to 30%.

As a crypto analyst based in Singapore, I observed that Biden’s decision to withdraw the U.S. from a rigid stance on digital assets opens up an opportunity for a more accommodating approach towards this industry, irrespective of who takes over the White House after November.

“It’s uncertain if Harris or any other potential candidates will choose this approach, but the lack of choices we once had has been replaced by new possibilities,” Presto remarked.

Industry players have rallied behind Trump due to his positive stance on cryptocurrencies over the past few months. This week, he is scheduled to attend the Bitcoin 2024 conference in Nashville, an announcement that has strengthened beliefs among market observers.

According to Lucy Hu, Metalpha’s senior analyst, the market is likely to experience a rise as Trump’s economic policy involves reduced interest rates and cheaper borrowing costs. This situation would undoubtedly stimulate growth in riskier assets like Bitcoin.

“In the mid-long term till the 2025 election, we would expect BTC to continue to rally,” Hu added.

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2024-07-22 10:23