Biden Out, Bull Run In? Here’s What Analysts Think

United States President Joe Biden’s decision not to seek a second term has caused market reactions, with some analysts predicting potential benefits for Bitcoin and crypto assets.

Points

• Biden’s withdrawal has led to market reactions and analyst predictions.
• Bitcoin initially dipped but quickly recovered following Biden’s announcement.
• Analysts have mixed views on the impact of Biden’s withdrawal on crypto assets.
• Trump’s potential reelection is seen as a positive for the crypto market.

President Joe Biden’s announcement that he would not be running for a second term in the White House has surprised the markets. The price of Bitcoin initially dipped by as much as 2.8% following the announcement but quickly bounced back, regaining over 3.6% within the next eight hours, according to TradingView data.

eToro market analyst Josh Gilbert described Biden’s sudden move as a “win for crypto assets,” highlighting Trump’s increased chances of reelection as a significant boost for the asset class. Gilbert noted, “The longer that we see Trump staying ahead in the election odds, the more crypto assets will price in his victory.”

However, not all analysts share this optimistic view. Swyftx analyst Pav Hundal warned that while Biden’s withdrawal could boost Trump’s chances, it would be challenging to draw a direct link between this development and the current bounce in crypto prices.

Trump has recently emphasized his support for Bitcoin and cryptocurrencies, making them a key part of his reelection campaign. He declared on June 14 that he would end the Biden administration’s “war on crypto” if elected president.

Markus Thielen, founder of 10X Research, suggested that Trump might make a surprise announcement at the upcoming Bitcoin 2024 conference in Nashville, potentially making Bitcoin a strategic reserve asset for the US government. Thielen noted that the US government currently holds around 212,800 BTC, worth approximately $15 billion, while it holds around $600 billion in gold reserves.

Looking ahead, Gilbert expects the price of Bitcoin to drive higher, citing the upcoming launch of spot Ether ETFs in the US as a key growth catalyst for the market.

Explanation

• Biden’s decision not to seek reelection has led to mixed reactions among analysts regarding its impact on the crypto market.
• Some analysts view Trump’s potential reelection as beneficial for crypto assets.
• The market’s response to political developments can influence crypto prices, highlighting the importance of staying informed about such events.