Bitcoin price experienced a slight rise on Monday, following a sharp rally over the weekend. This increase in price comes as a response to President Joe Biden dropping his reelection bid, which has caused an upsurge in uncertainty surrounding the U.S. political outlook. The world’s largest cryptocurrency, Bitcoin, saw a 0.9% increase in the past 24 hours, reaching $67,622.5 by 02:00 ET (06:00 GMT). However, despite testing $69,000 levels over the weekend, Bitcoin pulled back on Monday due to the increased political uncertainty.
Biden’s decision to endorse Vice President Kamala Harris as the Democratic presidential nominee has added to the uncertainty surrounding the upcoming 2024 elections. Although Harris still needs to be officially nominated during the Democratic National Convention in August, the endorsement from top Democrats has created a shift in the political landscape. With Trump polling slightly ahead of Biden and Harris, the suggestion that Harris may be able to run more effectively against Trump has caused some to reassess the potential outcome of the elections.
The recent rally in cryptocurrency prices was largely attributed to the prospect of a Trump presidency. Trump’s expressed support for the industry and his upcoming appearance at the Bitcoin Conference in Nashville have fueled optimism among Bitcoin traders. However, the uncertainty surrounding the elections and the potential implications of a Harris presidency have led to a more cautious approach among investors. The distribution of billions of dollars worth of Bitcoin by defunct exchange Mt. Gox has also contributed to the unease in the market.
In addition to Bitcoin, major altcoins have also experienced fluctuations in price, closely following Bitcoin’s movements. Ether, the second largest cryptocurrency, fell by 0.3% to $3,491.74, as market focus shifted towards the approval of a spot Ether exchange-traded fund for U.S. markets. The potential introduction of a spot ETF could have significant implications for the market, with reports suggesting that trading could begin as soon as this week. As a result, other altcoins in the market have shown mixed movements, reflecting the overall uncertainty and volatility in the crypto market.
The impact of political events on cryptocurrency prices is evident, with fluctuations in price closely tied to the unfolding political landscape. As the market continues to navigate through uncertainty, investors must remain vigilant and adapt their strategies to respond to changing conditions effectively.