President Biden's exit from the 2024 election led to $67M in crypto liquidations within 30 minutes, causing significant market volatility.
President Joe Biden's unexpected withdrawal from the 2024 presidential race led to a rapid series of liquidations in the cryptocurrency market, totaling nearly $67 million in just 30 minutes. The announcement caused a sharp dip and subsequent recovery in Bitcoin's price, highlighting the volatility of the crypto market in response to political events.
Key Points:
Immediate Impact on Crypto Market:
Biden's withdrawal triggered a 2.3% drop in Bitcoin's price to $65,880.
This sharp decline led to $67 million in liquidated long positions within 30 minutes.
Rapid Recovery and Further Liquidations:
Bitcoin quickly rebounded to a 24-hour high of $68,480.
The recovery caused an additional $34 million in liquidated short positions.
Wider Market Effects:
Over 12 hours, $81.1 million in long positions and $53.4 million in short positions were liquidated.
Total liquidations included $43.8 million in Bitcoin, $31.1 million in Ether, and $8.6 million in Solana.
Market Reactions and Analysis:
Markus Thielen of 10x Research noted the lack of a credible alternative to Biden as a factor in Bitcoin's recovery.
A significant buy order also contributed to the rapid price rebound.
Future Implications:
Vice President Kamala Harris is considered a likely Democratic nominee following Biden's withdrawal.
The event underscores the sensitivity of crypto markets to major political developments.
President Biden's sudden withdrawal from the 2024 presidential race led to significant market volatility, resulting in nearly $67 million in crypto liquidations within 30 minutes. While Bitcoin quickly recovered, the event highlighted the crypto market's susceptibility to political events and the need for traders to remain cautious during such times.
Source: Cointelegraph
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