Bitcoin Volatility Spikes After Biden Exits 2024 Presidential Race

Bitcoin Volatility Increases After Biden Drops Out of 2024 Presidential Race

The price of Bitcoin took a hit on Sunday after President Joe Biden suddenly announced that he would not seek re-election in the 2024 presidential race. The unexpected news led to millions of people quickly liquidating long positions. The price of Bitcoin fell from $67,453 to $65,884 in just 30 minutes as traders reacted to the sudden political development. Similar short-term declines were also seen in other major cryptocurrencies, including Ethereum and Solana, indicating a broad market reaction.

But the market quickly recovered after Biden endorsed Vice President Kamala Harris as the Democratic nominee. Bitcoin rose to $68,418, its highest since June 12, before stabilizing. Meanwhile, Solana hit a two-month high of nearly $185.

Biden’s decision to resign comes after weeks of mounting pressure from within his own party. “I have decided not to accept the nomination and will focus my full energies on my duties as President for the remainder of my term,” he wrote in a letter posted on Twitter. “My first decision as the party’s nominee in 2020 is to select Kamala Harris as my Vice President.”

This volatility has led to significant liquidations across crypto markets. CoinGlass data shows that approximately $159 million worth of positions have been liquidated in the past 24 hours, with longs bearing the brunt of the burden at $99 million, mostly during the post-announcement decline. Bitcoin alone caused $46 million in liquidations, followed by Ethereum at $31 million.