US President Joe Biden sent shockwaves through markets as he announced he will not run again for another four years in the White House.
“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,” Biden said in a statement.
The president threw his support behind his Vice President Kamala Harris as his replacement.
Bitcoin dropped 2.3% to as low as $65,885 on the news in thin weekend trading, before recovering. It hovers at around $67,002 at about 7:45 pm in London.
Why the drop?
“It’s because there’s a higher chance of his replacement defeating Trump in November,” said analyst Noelle Acheson in a tweet. “That is less favourable for crypto overall.”
Doland Tremp, a memecoin based on candidate Donald Trump, soared 30% to about 55 cents.
Jeo Boden, a play on the president’s name, plunged 59% to about one cent.
A token dubbed Kamala Horris skyrocketed 131%.
Trump has emerged as a crypto-friendly candidate this year as Gary Gensler’s Securities and Exchange Commission cracks down on the industry.
But Harris’ stance is harder to suss out. She has never taken an official stance towards crypto or commented on the industry.
Growing role
However, she has strong ties to the technology industry.
Political memecoins highlight the growing role of crypto in elections, with industry insiders betting on the outcome of the November vote to catapult Bitcoin to new heights.
The industry has poured millions into swaying politicos in Washington.
It seems to be working — politicians are warming to crypto and Congress has voted through sweeping pro-crypto policies.
Crypto election
Biden’s shock decision comes on the back of a tumultuous presidential race, filled with criminal convictions, a chaotic debate, crypto endorsements and an assassination attempt.
The race has also made crypto a key election issue.
In May, Trump positioned himself as a pro-crypto candidate, pivoting from his previous assertion that Bitcoin is “a scam against the dollar.”
The industry rallied behind the former president’s second attempt to recapture the White House.
Industry dynamos like the founders of tech venture capitalist giant a16z, and Messari founder Ryan Selkis have come out swinging for Trump.
Some have warned that Trump’s stance on immigration and tax cut could send inflation skyward, which would be bad for the price of Bitcoin.
Biden, on the other hand, was regarded as predominantly anti-crypto, although there were recent signs that he had warmed up to it before he withdrew his bid for a second term.
A wager on crypto-powered betting site Polymarket puts the odds of Harris as the Democratic nominee at 82%.
The bet gives runner-up, former first lady Michelle Obama, a 4% chance of bagging the nomination, even as the former First Lady has made no bid for the White House.
