Bitcoin’s volatile journey continues to captivate investors and traders alike. Recently, the world’s largest cryptocurrency made headlines by briefly rising past $68,000, largely due to a significant political development in the United States. President Biden’s announcement of his withdrawal from the upcoming election stimulated a hope among crypto enthusiasts and traders.
The Impact of Biden’s Announcement on Bitcoin
BTC gains started late Sunday, as current U.S. president Joe Biden said in an X post that he would not contest the upcoming November elections. However, this dropped the possible Republican candidate Donald Trump from Sunday’s 71% to 65% in Asian morning hours Monday on the crypto betting application Polymarket. Meanwhile, Kamala Harris unofficially won a majority of delegates to become the nominee for president after Biden’s dropout.
Broader Crypto Market Reaction:
Bitcoin’s rise was not an isolated event; it lifted the entire crypto market.
Majors rose higher, driven by BTC strength. Ether [ETH] rose above $3,500, Solana [SOL] reached $185, while dogecoin [DOGE] also gained. The broad-based CoinDesk 20 (CD20), a liquid index that tracks the largest crypto tokens, minus stablecoins, also moved up.
Political Influence on Crypto Sentiment
The political landscape has always been a crucial factor influencing market sentiment. President Biden’s decision to step aside opened the field to other competitors who might adopt a more constructive approach towards the digital asset industry. This potential shift was seen as a significant positive by the crypto community.
According to Presto, a Singapore-based crypto research firm, Biden’s withdrawal has introduced a new dynamic to the U.S. political scene. “Whether Harris or any other contenders will pursue such a path remains to be seen, but the optionality that hardly existed before is now there,” the firm noted in a report.
Expert Opinions on Future Market Trends
Trump’s favorable view of cryptocurrencies has attracted massive support from industry players in the past months. He is scheduled to appear at the Bitcoin 2024 conference later this week in Nashville, a move that has furthered perspective among market watchers.
“We would expect the market to rally higher as Trump’s key economic policy would be a lower interest rate and cheaper borrowing costs. This would surely boost all risky assets, including BTC,” shared Lucy Hu, senior analyst at Metalpha, in a Telegram message.
“In the mid-long term till the 2025 election, we would expect BTC to continue to rally,” Hu added.
Conclusion
In conclusion, Bitcoin’s ascent to over $68k amid Biden’s exit has sparked enthusiasm among crypto bulls, highlighting the resilience and potential of digital assets in today’s financial landscape.
