Impact of Biden’s withdrawal from the presidential race on Bitcoin
President Biden’s decision to end his presidential campaign shook Bitcoin for a time, but Elon Musk’s support soon stabilized and boosted the cryptocurrency’s value
President Joe Biden’s decision to end his reelection campaign sent shockwaves through both the political and financial worlds.
Bitcoin initially fell 2.5% after the announcement, but quickly rebounded, closing slightly higher for the day and maintaining gains of 8% over the past week
Biden’s withdrawal is a short-term negative for Bitcoin. Former President Trump had hoped that Biden would continue to run, seeing him as an easy opponent. The younger Democratic candidate is a tougher challenge for Trump, which initially led to a sell-off in Bitcoin.
Musk’s support offsets the lower likelihood of a president who supports Bitcoin. As one of the world’s wealthiest and most influential individuals, Musk’s support for Bitcoin is significant. His actions often lead to major market moves, as seen in his previous comments on Dogecoin.
Uncertainty over the Democratic candidate will lead to market volatility this week. Key events included the launch of the Ethereum ETF and the distribution of tokens to Mt. Gox creditors, all of which contributed to the dynamic development of the market environment.
Rosenblum speculated that Elon Musk may attend the Bitcoin 2024 event in Nashville, where Trump is scheduled to give a speech.
Musk's increasing involvement in cryptocurrencies could be very positive. As a leading technologist, Musk can promote innovative uses of Bitcoin and wider cryptocurrency adoption.
His remarks that Dogecoin will become the currency of Mars have caused a strong reaction in the market. If Musk launches a more serious web3 concept, this could have a huge impact on the market.
All in all, Biden's withdrawal initially unsettled Bitcoin, but various factors have stabilized and may strengthen Bitcoin. Musk's influence, the Ethereum ETF, and political dynamics all bring a complex and promising outlook to the crypto market. The changing political and regulatory landscape will continue to shape the future of Bitcoin.
