Following Biden's Withdrawal, Will Bitcoin Price Go UP or DOWN?

The cryptocurrency market has experienced significant turbulence recently, catalyzed by major political shifts and influential endorsements. This article delves into the aftermath of President Joe Biden’s withdrawal from the 2024 election, the predicted resignation of SEC Chair Gary Gensler, and the effects of Elon Musk’s apparent endorsement of Bitcoin.

Biden’s Withdrawal Wipes $67M in Crypto Long Positions

On July 21, nearly $67 million in leveraged long positions were liquidated within 30 minutes following the announcement of President Joe Biden’s withdrawal from the 2024 election. Bitcoin’s price dropped sharply by 2.3% to $65,880. However, the price quickly rebounded to a 24-hour high of $68,480, causing short positions to incur a $34 million loss. Markus Thielen, founder of 10x Research, noted that a substantial buy order contributed to this rapid recovery. The total liquidations reached $134.5 million over a 12-hour period, primarily on Binance and OKX.

Gensler’s Likely Resignation Post-Biden Era

Gary Gensler, Chair of the United States Securities and Exchange Commission (SEC), is predicted to resign in early 2025 after Biden's term ends. Thielen suggests that a Trump administration would be detrimental to Gensler’s role. The SEC Chair’s term officially ends in June 2026, but political dynamics could hasten his departure. Trump's running mate, J.D. Vance, has criticized Gensler’s approach to crypto regulation, heightening speculation about his resignation.

Elon Musk’s Endorsement Sparks Bitcoin Surge

Elon Musk’s change of his profile picture to one featuring "laser eyes" has reignited interest in Bitcoin. The laser eyes meme, popularized during the 2021 bull run, symbolizes a focus on Bitcoin's success. Musk's endorsement led to a brief surge in Bitcoin's price, surpassing the $68,000 mark. This follows Tesla’s $1.5 billion Bitcoin acquisition in February 2021, despite later dropping it as a payment method due to environmental concerns.

Bitcoin Price Prediction

Bitcoin's price might be the most likely to surge with positive news and to drop following negative ones. For instance, the next nominee to replace President Joe Biden in the 2024 presidential election would have a great impact on Bitcoin price at first, and later the result of the election would have the major impact. Yet, in between both events, the position of the next democrat nominee towards cryptos could change all odds. 

While Bitcoin price now surpassed the latest July crash, and recovered trading back around $67-68K, with a great weekly increase in performance by 10.55%, the last 24 hours were critical with a slight increase of 0.76% reflecting the market turbulence following the current news. Making the Bitcoin price highly unpredictable at the moment.

While in the long term, Bitcoin price is expected to surpass the $68K level and trade back over $70K, just like in March, for this July, it's expected for Bitcoin to struggle at the highest at $69K in a positive market, and to drop back to $65K at a lowest in a negative one.