Joe Biden Withdraws from Presidential Race: Impact on the Crypto Market

Joe Biden Withdraws from Presidential Race: How Will the Crypto Market React?

This Sunday, the President of the United States, Joe Biden, announced his withdrawal from the presidential race in a historic decision. While he is not the first candidate to abandon the re-election race, the circumstances surrounding his decision are unique. Analysts are eagerly watching to see how the crypto market will react to this new dose of drama.

In a post on his X account, the current president and Democratic candidate thanked his supporters. He also stated that stepping aside was the best decision for both himself and the country. This move ends a chapter marked by significant pressure on the octogenarian politician, whose public performance had been a cause for concern.

During the recent presidential debate, Biden struggled to hold his own against his Republican rival, Donald Trump. Since then, public opinion has leaned towards the hypothesis (apparently true) of the veteran politician’s deteriorating mental health.

In any case, the former presidential candidate requested that his running mate, Kamala Harris, take his place. Although this decision will be made at the party convention in August, it is almost certain that the vice president will be Trump’s contender.

Will the Crypto Market Decline?

Considering the shifting dynamics in the heated U.S. political landscape, the financial sector is entering a completely new phase. Experts are now speculating on how the crypto market will react to these changing conditions in the presidential race of the world’s leading economic power.

Initially, Bitcoin‘s price sought to drop but quickly regained momentum. It is important to note that it is still too early to predict how crypto assets will behave in the coming months leading up to November 5.

One might think that cryptocurrencies will perform negatively given that Trump now has a more lucid rival. Being much younger, Harris’s capabilities (if she is elected as the candidate) could make her a strong competitor against Trump. She would be able to exploit the mogul’s numerous weaknesses and gain an advantage with voters.

Additionally, as a woman and an African American, she would have double the support from key voting communities. Under such circumstances, she would have a strong chance of victory, which could create tension among crypto investors who might see reduced chances of accessing the opportunities promised by Trump.

On the other hand, some might believe that the crypto market will react positively. Trump’s position, especially after the failed attack against him, is enviable. His projection generates confidence and stability compared to the disorder in the opposing camp. Essentially, this perspective suggests that Biden’s exit and Harris’s entry will change nothing.

In this latter scenario, cryptocurrencies would perform positively following events like the Ethereum spot ETFs and the anticipated rate cuts.