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Bitcoin Slumps Towards $63K as Speculation About Biden Dropout Intensifies

Jul 17, 2024

As a seasoned researcher with extensive experience in following the cryptocurrency market and its correlation with global events, I find Wednesday’s price action to be a stark reminder of the volatile nature of this asset class. The sudden plunge of Bitcoin (BTC) below $64,000, alongside the decline in U.S. equity prices and mounting speculation about the presidential election race, left me feeling a sense of déjà vu.

The cryptocurrency market experienced losses once more on Wednesday, coinciding with a downturn in the US stock market and intensifying conjecture regarding the upcoming presidential election.

As a researcher studying the cryptocurrency market, I observed a significant drop in Bitcoin’s value during mid-morning trading hours in the U.S. The price dipped from $65,000 to $63,500 within a two-hour span, resulting in a 1.7% decrease over the past 24 hours. Ether (ETH) and Solana’s native token (SOL), while holding up slightly better, still experienced declines with each coin lower by more than 1%.
In simpler terms, the prices of smaller digital assets took a bigger hit, causing the Coindesk 20 Index to decrease by 2.8%. Notably, Ripple’s XRP, Polkadot’s DOT, Cardano’s ADA, and Polygon’s token (MATIC) experienced declines ranging from 5% to 6%.
Bitcoin Slumps Towards $63K as Speculation About Biden Dropout Intensifies

The price movements occurred as U.S. stocks struggled to recover from significant losses earlier in the week. The technology-heavy Nasdaq 100 index slipped by 1%, while the widely-followed S&P 500 index fell by 0.7%.

The uncertainty surrounding the upcoming U.S. presidential election has significantly increased in the past few hours due to rumors that influential party members are urging President Biden against running for re-election.

Intriguing developments have emerged in the crypto prediction market Polymarket. Currently, traders estimate an approximate 80% likelihood that Joe Biden will withdraw from the presidential race, marking a significant increase from the 40% probability reported just a day prior. Conversely, Vice President Kamala Harris’ odds of becoming the Democratic nominee have surged to approximately 63%, up from a mere 15% the previous day.

The probability of Republican nominee Donald Trump winning according to Polymarket dipped slightly to 65%, down from a peak of 70% following his survival of an assassination attempt the previous week.

As a crypto investor, I’ve observed an uptick in digital asset prices over the last week. This surge can be partially attributed to my belief that Donald Trump’s chances of reelection have grown stronger. Consequently, I anticipate a more crypto-friendly administration under his potential second term, which further bolsters my confidence in investing in this space.

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2024-07-18 19:57