Biden’s Decision Sends Shockwaves To Crypto Market

July 23, 2023
SUID

Table of Contents

In a surprising turn of events, —- President Joe Biden’s decision sends shockwaves to crypto market —- that he will not seek reelection in 2024, leading to significant turmoil in the market.

Following Biden’s announcement, the cryptocurrency market experienced a flurry of activity. Bitcoin, the leading digital currency, quickly surged to a peak of $68,480 within the day. This rapid increase indicated a positive reaction from investors, who saw Biden’s decision as a potential shift in political dynamics that could favour the crypto market.

After Biden announced the withdrawal, leveraged long positions in the crypto market dropped by $67 million in just 30 minutes. This happened between 5:30 pm and 6:00 pm UTC on July 21, following a 2.3% decrease in Bitcoin’s value to $65,880.

Market Turbulence and Swift Recovery

The impact of President Joe Biden’s announcement that he would not run for reelection in 2024 was significant in the cryptocurrency world, triggering a lot of activity in the next 24 hours.

Bitcoin, the most well-known digital currency, experienced a quick surge in value. It climbed to a peak of $68,480 in just one day. This sudden increase showed strong market confidence and a positive reaction from investors to the news.

But, this rapid rise also had negative consequences. Traders who had bet that Bitcoin’s price would go down, known as taking short positions, faced substantial losses. In total, these traders lost $34 million due to the unexpected spike in Bitcoin’s value.

This event highlights how political announcements can greatly influence the cryptocurrency market, causing both opportunities and risks for investors.

Extended Impact and Coin-Specific Liquidations

Taking a closer look at the 12-hour window from 10:00 am to 10:00 pm on July 21 reveals a clearer picture of the market upheaval. During this period, a substantial $134.5 million worth of liquidations occurred, marking the highest amount recorded over a 12-hour period since July 8.

Significant Liquidations

Bitcoin: $43.8 million in liquidations
Ether: $31.1 million in liquidations
Solana: $8.6 million in liquidations

These figures highlight the considerable movement and impact within the cryptocurrency sector during that tumultuous 12-hour stretch. The detailed breakdown demonstrates how different cryptocurrencies were affected, with Bitcoin, Ether, and Solana experiencing significant liquidations.

This event underscores the volatility of the cryptocurrency market and the rapid changes that can occur within a short timeframe. Investors and traders need to stay vigilant and informed to navigate such unpredictable shifts effectively.

Platforms and Predictions

The bulk of these liquidations took place on major platforms as they saw a total of $64.5 million in liquidations, while one experienced $44 million. This significant activity on some reputed platforms highlights the scale of the market movement during this period.

Political Developments and Market Response

Looking ahead to the 2024 elections, US Vice President Kamala Harris is emerging as a probable Democratic nominee to succeed President Biden. This political development is already creating ripples in the market as investors try to anticipate the potential impacts.

Current Market Status

As of the latest update, Bitcoin is trading at $67,850, reflecting a modest 0.55% increase over the past 24 hours. This slight uptick indicates some stabilization following the recent turmoil.

Uncertain Future Amidst Political Shifts

Despite the current market conditions, the true impact of the upcoming US elections on the cryptocurrency market remains unclear. Various factors are at play, making it hard to predict how this political change will affect cryptocurrency in the long run.

The outcome of the elections can influence regulations, investor sentiment, and market stability. These factors can either positively or negatively impact the value and adoption of cryptocurrencies.

Should People Invest in Crypto?

President Biden’s decision sends shockwaves to crypto market, as traders and investors comprehend these uncertain times, one thing is evident – the relationship between US politics and the crypto world is complex and continually changing. It is important to monitor this evolving landscape closely.

When considering whether to buy cryptocurrency in Dubai or not, it is important to stay informed about political events and their possible impacts. Doing thorough research and seeking professional advice can help you make well-informed decisions.