Yesterday (July 21), President Joe Biden announced he would not “seek reelection” in the 2024 Presidential race, citing that stepping down was in the “best interest of his party and the nation.”
In a follow-up post, he supported Vice President Kamala Harris to contend against Donald Trump, the Republican frontrunner and former U.S. President.
Biden noted: “Today I want to offer my full support and endorsement for Kamala to be the nominee of our party this year.”
Kamala Harris, despite her established presence in politics from her 2020 vice-presidential victory with Biden has now faced an uncertain reaction from the markets as she potentially gears up to lead the Democratic ticket.
Biden's endorsement positions her prominently in the Democratic lineup, though her official nomination remains unconfirmed.
Regardless, Biden's announcement of stepping down has stirred the political arena and sent ripples through the crypto market.
Market Reactions to the News
Following President Biden's withdrawal from the presidential race, the crypto market experienced notable volatility.
Before the announcement, Bitcoin was trading above $66,000 but swiftly dropped to the $65,700 region immediately after the news.
However, the price was quick to rebound, surging by more than 7% to exceed $68,000. It is currently stabilizing at around $67,184, marking a modest 0.5% increase over the past day.
The news also significantly shook the meme coin sector.
The Solana-based Jeo Boden (BODEN) coin, inspired by President Biden, saw a dramatic drop, losing over 50% of its value and currently trading at $0.0095.
Conversely, Solana-based Trump-themed meme coins, Doland Tremp (Tremp) and TrumpCoin (DJT) gained 10.5% and 6.5%, respectively, with Tremp trading at $0.4499 and DJT at $0.007935.
Additionally, Kamala Horris (KAMA), another Solana-based memecoin, surged by 78% in the last 24 hours to a new high of $0.02571 after Harris received Biden's endorsement for the presidential nomination.
This market upheaval has also impacted traders significantly, with Coinglass data showing that 59,457 traders were liquidated in the last 24 hours, culminating in $174.13 million in total liquidations.
Bitcoin alone accounted for approximately $49.75 million of this, with an even split between long and short positions—$28.21 million in longs and $21.55 million in shorts liquidated.
Crypto total liquidations: Source: Coinglass
On the betting front, a Polymarket user lost $2 million wagering on Joe Biden to secure the Democratic nomination and presidency.
Conversely, another trader saw a 6,000% return on a speculative bet that Kamala Harris would receive the nomination, increasing the value of their position to nearly $769,000, even though her confirmation as the nominee remains uncertain.
What is Harris Stance on Crypto Like Against Trump?
It is worth noting that Vice President Kamala Harris, despite her tenure in high office, has not yet articulated her position on crypto, blockchain, or non-fungible tokens (NFTs).
This absence of public commentary suggests a strategic caution, potentially aligning her with the existing administrative stance initiated under President Biden, whose supporters also form the backbone of her political base.
Meanwhile, Harris has historically adopted a cautious view on emerging tech like artificial intelligence.
This reserved approach “might” extend to her crypto policies, possibly leading to a more restrictive regulatory environment as she progresses in her campaign.
Contrasting sharply with Harris, former President Donald Trump, who is also now a candidate in the 2024 US presidential race, has openly embraced crypto.
He has become a prominent advocate for Bitcoin, attending several conferences and labeling himself the potential "first crypto President."
Trump has vowed to protect American crypto owners from regulatory pressures, particularly from figures like Senator Elizabeth Warren, whom he has sharply criticized.
Trump's campaign promises include ensuring that crypto production remains within the United States.
Moreover, Trump has emphasized the strategic importance of the U.S. leading the global crypto industry to prevent dominance by other nations.
In a statement to Bloomberg, he expressed his concerns about other countries overtaking the U.S. in this technological field, emphasizing the industry's nascent stage and its potential for growth.
Trump noted: “It’s a baby. It’s an infant right now. But I don’t want to be responsible for allowing another country to take over this sphere.”
A Cleansing of the Crypto Market on the Horizon?
Amid all these, Markus Thielen, founder of 10x Research, has forecasted significant shifts at the United States Securities and Exchange Commission (SEC), suggesting that SEC Chair Gary Gensler might step down by early 2025.
This speculation aligns with historical precedents where SEC chairs resign following the inauguration of a new U.S. president.
Thielen's prediction is particularly poignant given President Joe Biden's decision not to seek reelection, which he believes strengthens former President Donald Trump's position for the 2024 election.
Thielen posits that a Trump victory, perceived as more favorable to the crypto sector, could lead to Gensler’s earlier departure despite his term officially ending in June 2026.
This anticipated change at the SEC, according to Thielen, could perhaps signal a cleansing or a more crypto-friendly shift in U.S. regulatory space, especially as Trump has shown strong support for the industry.
