Biden’s decision to withdraw from the presidential race in 2024 may prove highly bullish for crypto assets, but caution remains supreme on potential rallies.
The Markets React: President Joe Biden’s Decision Not to Seek Re-election Causes Stir.
Now, Analysts Divided: Joe Biden’s Decision May Support Bitcoin and Cryptocurrencies at $67,868, but Investors Have to Be Careful.
The Bitcoin price dropped 2.8% post-Biden’s Announcement, Rebounded to $65,800, and Surged 3.6% in the last 8 hours.
Acting on Biden’s recent surprise decision, eToro analyst Josh Gilbert said that labeling Biden’s decision a “win for crypto assets” could be a game-changer for the asset class if Trump is re-elected.
“The longer that we see Trump staying ahead in the election odds, the more crypto assets will price in his victory.”
Bitcoin and cryptocurrencies are part of Trump’s reelection campaign. On June 14, he threatened to stop the Biden administration’s “war on crypto.”
10X Research’s Markus Thielen predicted that if Trump becomes more favorable to crypto, he might announce the US government’s plans to adopt Bitcoin as a strategic reserve on the sidelines of the Bitcoin 2024 conference in Nashville on July 25th.
Thielen reported on July 21 that the US government currently possesses approximately 212,800 BTCs, which is worth $15 billion in today’s market price, as opposed to $600 billion in gold reserves. The ability to double its Bitcoin holdings could have similar effects as the net asset flows into spot Bitcoin ETFs for the year.
Gilbert expects the Bitcoin price to increase in the future as the US plans to launch spot Ether ETFs at $3,511, making a major impact on the market.
Tempering expectations: Evaluating Possible Consequences When Trump might win
However, as some other analysts pointed out, Biden’s recent development might not be enough to spark a crypto boom.
Swyftx analyst Pav Hundal has continued to explain that while the withdrawal could likely help Trump eventually, it felt difficult to trace the current market rebound directly to the wider crypto market.
