Bitcoin Volatility Spikes After Biden Exits 2024 Presidential Race
Bitcoin's price took a hit on Sunday following President Joe Biden's sudden announcement that he would not seek reelection in the 2024 presidential race. This unexpected news led to the rapid liquidation of millions in long positions. Bitcoin's price dropped from $67,453 to $65,884 within just 30 minutes, as traders reacted to the sudden political development. Similar short-term declines were observed across other major cryptocurrencies, including Ethereum and Solana, indicating a broad market response.
However, the market quickly rebounded, bolstered by Biden’s endorsement of Vice President Kamala Harris as the Democratic candidate. Bitcoin surged to a high of $68,418, its highest level since June 12, before stabilizing. Meanwhile, Solana climbed to nearly $185, marking its peak price in two months.
Biden's decision to step down followed weeks of increasing pressure from within his party. In a letter posted on Twitter, he stated, “I have decided not to accept the nomination and to focus all my energies on my duties as President for the remainder of my term. My very first decision as the party nominee in 2020 was to pick Kamala Harris as my Vice President.”
This volatility led to significant liquidations across the crypto markets. CoinGlass data revealed that nearly $159 million worth of positions were liquidated over the past 24 hours, with long positions bearing the brunt at $99 million, predominantly during the post-announcement dip. Bitcoin alone accounted for $46 million in liquidations, followed by Ethereum with $31 million.
