According to Cointelegraph: Memecoins linked to Joe, Jill, and Hunter Biden saw a dramatic decline, tanking more than 60% following United States President Joe Biden’s unexpected announcement that he will not run for re-election in 2024. Conversely, a meme coin tied to Vice President Kamala Harris experienced a surge, rallying 133% before cooling off.
Market Reaction and Liquidations
The abrupt news led to nearly $67 million worth of leveraged long positions being liquidated within 30 minutes, as Bitcoin's price dropped sharply by 2.3% to $65,880. According to the cryptocurrency market platform Coinglass, this liquidation occurred between 5:30 pm and 6 pm UTC on July 21. However, Bitcoin quickly recovered, reaching a 24-hour high of $68,480, causing traders with leveraged short positions to lose a combined $34 million.
Markus Thielen, founder of cryptocurrency firm 10x Research, commented on the situation, stating, “Biden was not credible to beat Trump, so an alternative candidate could have limited Trump’s chances. But there is no credible alternative …hence BTC pump.” Thielen also noted that a “huge” buy order hit the market around that time, contributing to the sharp recovery.
Wider Market Impact
Over 12 hours from 10 am to 10 pm UTC on July 21, more than $81.1 million in long positions and $53.4 million in short positions were wiped out. This included $43.8 million worth of Bitcoin and $31.1 million worth of Ether, while Solana saw $8.6 million liquidated. The combined liquidations, totalling $134.5 million, marked the highest 12-hour liquidation period since July 8. Most of these liquidations took place on Binance and OKX, with values of $64.5 million and $44 million, respectively.
Kamala Harris and 2024 Election Odds
With Biden’s withdrawal, Vice President Kamala Harris is considered a likely replacement for the Democrat candidate. According to the decentralized predictions platform Polymarket, Republican candidate Donald Trump holds 64% odds of winning the 2024 election, followed by Harris at 31%.
Current Bitcoin Trading
Bitcoin is currently trading at $67,850, up 0.55% over the last 24 hours, reflecting the market's resilience and quick rebound following the initial shock of Biden's announcement.