Joe Biden’s Withdrawal Wiped $67M of Crypto Long Positions in 30 Minutes

President Joe Biden’s withdrawal from the 2024 election led to the liquidation of $67 million worth of leveraged long positions within 30 minutes, with Bitcoin prices reacting sharply.

Points

• Biden’s announcement triggered the liquidation of $67 million in leveraged long positions.
• Bitcoin prices fell 2.3% to $65,880 before quickly recovering.
• A “huge” buy order contributed to Bitcoin’s sharp recovery.
• The impact on the crypto market was significant and immediate.

The cryptocurrency market experienced a sharp reaction to President Joe Biden’s announcement that he would not seek reelection in the upcoming 2024 election. Within just 30 minutes of the announcement, nearly $67 million worth of leveraged long positions were liquidated. This sudden liquidation was triggered by a 2.3% fall in Bitcoin’s price, which dropped to $65,880.

However, Bitcoin quickly recovered, reaching a 24-hour high of $68,480, causing traders with leveraged short positions to lose a combined $34 million. Markus Thielen, founder of 10x Research, noted that Biden’s withdrawal created uncertainty about his ability to challenge Donald Trump, leading to market volatility. Thielen also mentioned a “huge” buy order that contributed to the sharp recovery in Bitcoin’s price.

The significant liquidations and subsequent recovery highlight the crypto market’s sensitivity to political developments and the rapid pace at which prices can change. This event underscores the importance of staying informed about macroeconomic and political factors that can impact the cryptocurrency market.

Explanation

• Biden’s withdrawal from the 2024 election caused significant market volatility, leading to substantial liquidations.
• The rapid recovery in Bitcoin’s price demonstrates the market’s resilience and the influence of large buy orders.
• Staying informed about political and macroeconomic developments is crucial for navigating the crypto market.