US President Joe Biden shocked markets when he announced he would no longer seek a second term in the White House.
Now, some analysts say his last-minute move could benefit Bitcoin and cryptocurrencies in the coming months, while others advise investors to temper their excitement theirs at this time.
Nearly $67 million worth of leveraged long positions were liquidated from cryptocurrency markets within 30 minutes after US President Joe Biden withdrew from the 2024 election.
According to cryptocurrency market platform Coinglass, the massive liquidations took place from 12:30 to 1 a.m. on July 22 (Vietnam time), triggered by the Bitcoin price plummeting 2.3% to $65,880.
Total market liquidations in 15-minute blocks in the last 24 hours | Source: Coinglass
However, Bitcoin quickly recovered, reaching a 24-hour high of $68,480 – causing Shorts to liquidate a total of $34 million.
In the broader 12-hour time frame, more than $81.1 million and $53.4 million in Long and Short positions were wiped out between 5 a.m. and 5 p.m. on July 22 (according to Vietnam time).
Of which, $43.8 million in Bitcoin, $31.1 million in ETH, $8.6 million in SOL were liquidated.
Total Cryptocurrency Liquidations in 12 Hours | Source: Coinglass
Liquidations totaled $134.5 million, marking the highest in a 12-hour period since July 8. Most of the liquidations took place on Binance and OKX, with a total value of $64.5 million and $44 million respectively.
Describing Biden's surprise move as a “victory for crypto,” eToro market analyst Josh Gilbert commented that Trump's increased re-election chances represent “a huge boost for the asset class hey,” he added:
“The longer we see Trump ahead in the election, the more valuable cryptocurrency will be in his victory. It's hard to envision Kamala Harris or another Democratic candidate overturning Trump's lead in the polls with just three months left in this election race, but a lot could happen in the near future. that time frame, so nothing is impossible.”
Trump recently made Bitcoin and digital currencies a key part of his re-election campaign, declaring on June 14 that he would end the Biden administration's “war on crypto.” if elected President.
10X Research Chief Research Officer Markus Thielen suggests that Trump's crypto-friendly presidency could lead to wider acceptance of Bitcoin as a strategic reserve asset.
In a July 21 report, Thielen wrote that the US government holds only 212,800 BTC, worth about $15 billion, while it holds about $600 billion in gold reserves. If the government were to double its Bitcoin holdings, it would be “roughly equivalent” to the price impact of net inflows into Bitcoin spot exchange-traded funds (ETFs) so far this year.
Going forward, Gilbert expects Bitcoin prices to move higher, with the upcoming Ethereum spot ETF launch in the United States being one of the key catalysts for growth across the market.
Don't get too excited about Trump's victory?
However, some analysts say Biden's recent move may not lead to an immediate spike in crypto.
Swyftx analyst Pav Hundal warns that while Biden's withdrawal could boost Trump's chances, it will be difficult to make a direct link between this and the current recovery in price action in the market broader cryptocurrency.
“Learning from the Bitcoin ETF, we may see a temporary price slowdown before the uptrend resumes. This recent upward move is likely due to early Ethereum ETF speculation and it is important for investors to be cautious and not get too excited in the short term.”
Similarly, Gary Black, Managing Partner at The Future Fund, warned that President Trump's victory is a long way off.
“Those who think Trump/Vance will win by a landslide are running with their lights in front of their cars. The US public no longer trusts Trump after the events of January 6. I'm not a fan of Biden or Kamala but the Democrats could still nominate Newsom, Michelle Obama or another Democratic leader as their Presidential candidate. It is too early to have firm confidence in a second Trump term as President,” Black said in a July 22 post on X.
However, Markus Thielen says:
“Biden is not credible to beat Trump but an alternative candidate could limit Trump's chances. However, in reality there are no credible replacement candidates…hence BTC will rise.”
According to Thielen, a "huge" buy order also hit the market during that period, contributing to a strong recovery.
US Vice President Kamala Harris is considered a potential candidate to replace Biden as the Democratic Party candidate.
Republican candidate Donald Trump boasts a 64% win rate in the 2024 election, followed by Harris at 31%, according to decentralized prediction platform Polymarket.
https://tapchibitcoin.io/biden-rut-lui-gia-tien-dien-tu-tang-manh.html
