Massive $174 Million Crypto Liquidations Triggered by President Joe Biden’s Shocking 2024 Exit

The crypto market reportedly experienced significant instability due to the US presidential election, leading to a sharp increase in liquidations of $174 million in a single day. The unexpected turn of events during the election underscored the market’s susceptibility to political developments, highlighting the interdependence of digital assets and global finance.

Market Reaction to Withdrawal of President Joe Biden

President Joe Biden’s unexpected announcement of his withdrawal from the 2024 presidential contest triggered significant market turbulence. This news caused a rapid and substantial market response. Data from CoinGlass revealed that approximately $67 million in leveraged long bets were liquidated within a short 30-minute period following the announcement.

The biggest cryptocurrency by market capitalization, Bitcoin, allegedly experienced the most severe short-term impact. Bitcoin’s price dropped sharply by 2.3%, falling from $67,713 to $65,880. This abrupt decline surprised many traders, especially those with leveraged holdings. However, the market quickly recovered, showcasing its typical volatility and resilience. 

Shortly after the initial drop, Bitcoin’s price reportedly surged to a 24-hour high of $68,480. This quick rebound caused further market volatility, leading to the liquidation of nearly $34 million in leveraged short bets as the price spiked.

Broader Crypto Market Impact

The political shockwave appeared to extend beyond Bitcoin. On July 21, the cryptocurrency market reportedly saw total liquidations amounting to $134.5 million over a 12-hour period. This included $81.1 million in long cryptocurrency holdings and $53.4 million in short positions. 

According to news sources, Ethereum (ETH), the second-largest cryptocurrency, saw liquidations worth $31.1 million. Solana (SOL), another prominent player, faced $8.6 million in liquidations. These figures illustrate the widespread impact of the news across the crypto ecosystem. Major cryptocurrency exchanges like Binance and OKX processed $64.5 million and $44 million in liquidations, respectively, emphasizing their critical role in facilitating market movements and absorbing shocks during high volatility.

Political Implications of President Joe Biden Withdrawal and Market Sentiment

The intricate relationship between politics and cryptocurrency prices was evident in the market’s response to Biden’s exit. Many market participants view certain political outcomes as more favourable for the cryptocurrency industry, influencing trading decisions and market sentiment.

Markus Thielen, the creator of the cryptocurrency research company 10x Research, speculated that Biden’s departure initially increased Donald Trump’s chances of winning. Trump’s recent declarations advocating for all Bitcoin mining to occur in the US are seen as having potential positive effects for the sector.

With Vice President Kamala Harris now the Democratic candidate for the upcoming presidential election, the political landscape remains volatile. Investors and analysts will closely monitor this evolving situation to gauge market reactions.

Key Events and Predictions for the Crypto Market

The cryptocurrency market is gearing up for several major events that could further impact prices and trading activity. Notable among these is the July 27th Bitcoin 2024 Conference in Nashville, where former President Donald Trump is scheduled to speak. His statements may influence Bitcoin’s price direction. Comparisons are being made to Elon Musk’s 2021 remarks at a Bitcoin event, which initially caused a market dip but was followed by a significant rise. Speculations suggest Trump’s speech could have a similar effect, potentially driving Bitcoin to new all-time highs.

Takeaway

The cryptocurrency market remains highly volatile and susceptible to sudden swings driven by various factors. The recent liquidations serve as a stark reminder of the risks associated with trading cryptocurrency with high leverage. The market’s response to President Joe Biden’s withdrawal depicts its sensitivity to global political events. As the crypto ecosystem continues to evolve and integrate with traditional financial markets, these connections are likely to strengthen.