Biden announced his withdrawal from the US presidential race on Sunday local time, causing a stir and raising concerns in multiple markets. Cryptocurrencies that do not open on weekends have become the first type of asset to react.
On Sunday, the price of Bitcoin first fell after Biden announced his withdrawal, reaching a low of $65833 during the session, and then rose all the way, reaching a high above $68200. As of press time, the price of Bitcoin has remained stable at over $67700, with a cumulative increase of nearly 8% over the past 7 days.
After the news of Biden's withdrawal from the election, he immediately turned to supporting his deputy Harris' candidacy for the US presidency, which, combined with the direction of the Bitcoin market, seems to imply a bet on the Trump Harris showdown.
IG Australia Pty Ltd. market analyst Tony Sycamore said that the rise in Bitcoin prices indicates that the market believes that Harris led Democratic Party cannot defeat Trump led Republican Party in the election. Under the leadership of a president who supports the development of cryptocurrency (i.e. Trump), Bitcoin is ushering in a new dawn.
After Bitcoin, the second largest cryptocurrency Ethereum experienced a slight drop in price within 24 hours, with a decrease of approximately 0.12%. The overall cryptocurrency market value has increased by 0.42% in the past day.
Celebrating in advance?
On the 27th of this month, Trump will give a speech at a major Bitcoin conference, further strengthening his identity as a promoter of the crypto world. In addition, Trump is expected to hold a fundraising event after the Bitcoin conference.
BTC Markets CEO Caroline Bowler stated that the market is currently unclear about Harris' policy direction, and the topic of cryptocurrency may become a key factor in the success or failure of candidates from both parties. She hopes to hear more Harris' views on cryptocurrency in the coming weeks.
But some people also believe that Harris' victory is not significant, and the cryptocurrency market only needs to wait for Trump's victory. Teong Hng, CEO of Satori Research, a cryptocurrency investment company, pointed out that the activity in the over-the-counter options market suggests that Bitcoin may soon return to historical highs.
He added that institutional investors' bullish sentiment is increasing and expects a strong rebound in Bitcoin prices by the end of the year, with Trump's victory marking the peak of the asset's price.
Chris Weston, research director at Pepperstone Group, also analyzed that the recent strong capital flow into Bitcoin ETFs indicates that Bitcoin prices are expected to hit $70000 again.
Benjamin Celermajer, Co Chief Investment Officer of Magnet Capital, has begun to look to the future, stating that under the leadership of the Trump administration, the cryptocurrency market will become more valuable for investment.