Bitcoin experienced a sharp decline on Sunday after President Joe Biden’s sudden announcement of his decision to forgo reelection in the 2024 presidential race. The surprise declaration triggered a swift liquidation of millions in long positions, with Bitcoin’s value plummeting from $67,453 to $65,884 in a mere 30 minutes as market participants reacted to the political upheaval. This decline was mirrored by other major cryptocurrencies, including Ethereum and Solana, highlighting a widespread market response.
The market, however, quickly recovered following Biden’s endorsement of Vice President Kamala Harris as the Democratic candidate. Bitcoin rebounded to a peak of $68,418, its highest since June 12, before settling. Simultaneously, Solana reached nearly $185, its highest price in two months.
Biden’s decision to step aside came after mounting pressure from within his party. In a letter shared on Twitter, Biden announced, “I have decided not to accept the nomination and to focus all my energies on my duties as President for the remainder of my term. My very first decision as the party nominee in 2020 was to pick Kamala Harris as my Vice President.”
The market turbulence led to significant liquidations across the cryptocurrency sector. CoinGlass data reported nearly $159 million in liquidations over the past 24 hours, with long positions experiencing the greatest losses at $99 million, particularly during the post-announcement dip. Bitcoin alone saw $46 million in liquidations, followed by Ethereum at $31 million.
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