The recent announcement made by President Joe Biden regarding his decision to step down from the presidential race had a significant impact on the cryptocurrency market. Following the announcement, the Bitcoin price experienced a sudden crash, wiping off $2,000 in mere minutes and bringing it back down below $66,000. This abrupt decline caused other cryptocurrencies like Dogecoin and Shiba Inu to spiral alongside Bitcoin, leading to a wave of worry among crypto investors.
President Biden’s shocking revelation was made on X (formerly Twitter), garnering over 330 million views. In his announcement, he stated that he would prioritize his duties as president for the remainder of his current 4-year term and reject the Democratic Party nomination. Furthermore, he endorsed Vice President Kamala Harris as the Democratic Party’s presidential candidate and urged party supporters to unite and defeat Donald Trump. This unexpected turn of events caused a swift response in the crypto market, resulting in the sharp plunge of the Bitcoin price.
Following the announcement, not only did the Bitcoin price plummet, but coins like Dogecoin and Shiba Inu also dropped by approximately 3% each. However, the recovery was just as swift as the decline, with the Bitcoin price surging to new monthly highs and eventually crossing $68,000 on Sunday. This upward momentum in the Bitcoin price also led to positive movements in Dogecoin and Shiba Inu, with both cryptocurrencies experiencing notable gains from their lows.
Dogecoin, which had fallen below $0.128, saw its price rise back above $0.14, resulting in overall daily gains of over 4%. The daily trading volume for Dogecoin also witnessed a significant increase, surpassing $20 billion in one day. On the other hand, Shiba Inu saw a rise in its price from $0.0000173 to above $0.0000184. Despite this increase, the daily trading volume for Shiba Inu remained muted at around $383 million.
Despite the turbulence caused by President Biden’s announcement, Bitcoin continues to lead market bullishness and maintain the $67,000 support level following its recovery. This resilience in the Bitcoin price translated to an approximate 12% increase in the crypto’s price over the last seven days.
President Joe Biden’s decision to step down from the presidential race had a significant impact on the crypto market, causing a sudden crash followed by a swift recovery. The market response to this announcement underscores the interconnectedness between political events and cryptocurrency prices, highlighting the need for investors to stay informed and adapt to rapid market changes.