The recent crash in the Bitcoin price below $66,000 sent shockwaves through the crypto market, affecting not only Bitcoin but also other popular cryptocurrencies like Dogecoin and Shiba Inu. This sudden drop of $2,000 in mere minutes was attributed to a major factor – the resignation of US President Joe Biden. President Biden’s announcement that he was stepping down from the presidential race and endorsing Vice President Kamala Harris as the Democratic Party’s new candidate had a significant impact on the market.
Following President Biden’s announcement, the crypto market reacted swiftly. The Bitcoin price plunged sharply, causing coins like Dogecoin and Shiba Inu to drop approximately 3% each in response. However, the recovery was just as quick as the crash, with Bitcoin rising to new monthly highs and eventually crossing the $68,000 mark on the same day. This led to a bullish trend in the market, with Dogecoin and Shiba Inu also notching notable gains from their lows.
For Dogecoin, the price saw a significant increase, rising back above $0.14 after falling below $0.128. This resulted in daily gains exceeding 4%, with the daily trading volume surpassing $20 billion. On the other hand, Shiba Inu also experienced a price surge from its lows of $0.0000173 to above $0.0000184. Despite the increase in price, the daily trading volume for Shiba Inu remained relatively muted compared to Dogecoin, standing at around $383 million at the time.
Despite the temporary setback caused by President Biden’s announcement, the Bitcoin price continues to exhibit strong bullish momentum. The cryptocurrency is still holding the $67,000 support following the recovery from the crash, translating to an impressive 12% increase in price over the last seven days. This resilience demonstrated by Bitcoin indicates the overall confidence and optimism in the market, even in the face of unexpected events.
The recent events surrounding President Biden’s resignation and its impact on the crypto market serve as a reminder of the interconnectedness between politics and finance. The market’s quick reaction to political news highlights the importance of staying informed and being prepared for sudden fluctuations. As investors navigate through uncertain times, it is crucial to exercise caution, adapt to changing circumstances, and make informed decisions to mitigate risks and capitalize on opportunities in the volatile world of cryptocurrencies.
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