Crypto Majors Trade Flat Despite Stock Rebound as Markets Factor in Biden’s Decision to Step Aside

Crypto majors remained flat despite a rally in U.S. equity markets following President Joe Biden’s decision to step out of the electoral race, affecting market dynamics.

Points

• Crypto majors traded flat while U.S. equity markets rallied.
• President Joe Biden endorsed Vice President Kamala Harris, affecting market sentiment.
• S&P 500 and Nasdaq Composite saw gains; Dow Jones remained flat.
• Major tech stocks, including Nvidia, Meta, Alphabet, and Apple, posted gains.
• Bitcoin surged post-assassination attempt on Trump but pulled back afterward.

Crypto majors have traded flat over the past 24 hours, despite a notable rally in U.S. equity markets. This market response followed President Joe Biden’s announcement that he would not seek re-election, endorsing Vice President Kamala Harris instead. Prediction markets showed a slight decline in former President Donald Trump’s victory odds after Biden’s endorsement of Harris, potentially increasing headwinds for traders betting on a Trump win. The potential loosening of regulations under a Trump-led government could benefit fossil fuel providers and banking stocks.

Equity indices gained in early trading, with the S&P 500 rising 0.6% and the Nasdaq Composite climbing 1.4%. However, the Dow Jones Industrial Average remained flat. Major tech stocks, including Nvidia, Meta Platforms, Alphabet, and Apple, also posted gains exceeding 1%. Nvidia saw a 4% surge, recovering from last week’s 8% drop. Traders are now focusing on earnings calls from major tech companies like Tesla, Google, and Visa.

Despite stock gains, cryptocurrencies experienced little movement. Bitcoin, which had surged over 18% to a high of $68,400 following the assassination attempt on Trump, has since pulled back to $66,699, marking a 1% decrease in the past 24 hours. The global cryptocurrency market cap stands at $2.55 trillion, down 0.3% in the same period, according to Coingecko data.