- Joe Biden announces he won't seek reelection in 2024, pledging to serve out his term and backing VP Kamala Harris for the Democratic nomination.
- Bitcoin price dropped 2.3% following Biden's announcement, triggering $67 million in long position liquidations.
- Speculation emerges that Trump might announce plans to designate Bitcoin as a U.S. strategic reserve asset at the upcoming Bitcoin 2024 conference in Nashville.
On July 21, U.S. President Joe Biden announced he will not run for reelection. Amid calls from his Democratic Party to step down, Biden confirmed he will stay as President until January 2025 and plans to speak to the nation soon.
“It has been the greatest honor of my life to serve as your President. And while it has been my intention to seek reelection, I believe it is in the best interest of my party and the country for me to stand down and to focus solely on fulfilling my duties as President for the remainder of my term,” Mr. Biden wrote.
— Joe Biden (@JoeBiden) July 21, 2024
However, he's now backing Vice-President Kamala Harris for the Democratic nomination, clarifying the Democrats' path ahead.
My fellow Democrats, 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. And it’s been the best… pic.twitter.com/x8DnvuImJV
— Joe Biden (@JoeBiden) July 21, 2024
Almost $67 million in leveraged long positions were wiped out from the cryptocurrency market in just half an hour after Biden announced his withdrawal from the 2024 election. This sudden liquidation occurred between 5:30 pm and 6 pm UTC on July 21, following a significant 2.3% drop in Bitcoin's price to $65,880, according to Coinglass.
However, Bitcoin swiftly bounced back, hitting a peak of $68,480 within 24 hours. This rise caused traders holding leveraged short positions to suffer losses totaling $34 million.
Markus Thielen, founder of cryptocurrency firm 10x Research, commented on the situation:
“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 substantial buy order significantly boosted the market's rapid recovery during that period.
Furthermore, Thielen hinted that Trump, who supports cryptocurrencies, might unexpectedly announce at the Bitcoin 2024 conference in Nashville on July 25 that he plans to designate Bitcoin as a strategic reserve asset for the U.S. government.
In a July 21 report, he, in fact, he noted that the U.S. government currently owns 212,800 BTC, valued at about $15 billion, compared to approximately $600 billion in gold reserves. If the government were to double its Bitcoin holdings, it would have a price impact similar to the net inflows into Bitcoin spot exchange-traded funds (ETFs) so far this year.
Edited by Harshajit Sarmah
