Over the weekend, the cryptocurrency market experienced a sudden downturn as the Bitcoin price took a nosedive, causing other altcoins like Dogecoin and Shiba Inu to follow suit. This unexpected crash wiped out $2,000 from the Bitcoin price within minutes, dropping it below the $66,000 mark and causing concern among investors.
The primary catalyst behind this market turmoil was US President Joe Biden’s shocking announcement that he would be stepping down from the presidential race. In a statement posted on social media platform X (formerly Twitter), President Biden revealed his decision to prioritize his duties as president for the remainder of his term, thus relinquishing the Democratic Party nomination. He endorsed Vice President Kamala Harris as the new frontrunner for the Democratic Party ticket and called on party supporters to unite against former President Donald Trump.
Following President Biden’s announcement, the crypto market reacted swiftly, with the Bitcoin price plunging significantly. This downward movement also affected altcoins like Dogecoin and Shiba Inu, both of which experienced a 3% drop in response to the news. However, just as quickly as the prices fell, they rebounded, with Bitcoin reaching new monthly highs and surpassing $68,000 on the same day.
In the wake of the price drop, Dogecoin and Shiba Inu also saw an uptick in their values. Dogecoin, which had fallen below $0.128, bounced back above $0.14, registering over 4% in daily gains and a trading volume exceeding $20 billion in a single day. Conversely, Shiba Inu climbed from $0.0000173 to over $0.0000184, although its daily trading volume remained comparatively low at around $383 million.
Despite the initial shock to the system, Bitcoin managed to maintain its bullish momentum and held firm at the $67,000 support level after the recovery. This resilience translated to a 12% increase in the cryptocurrency’s price over the past week, signaling continued optimism among investors.
President Biden’s unexpected announcement had a significant impact on the cryptocurrency market, triggering a sharp decline in prices followed by a rapid recovery. While the initial reaction was one of uncertainty and fear, the market quickly stabilized, with Bitcoin leading the way in reclaiming lost ground. As the political landscape continues to evolve, it is clear that external factors like presidential announcements can have a profound effect on the crypto space, highlighting the need for investors to remain vigilant and adaptable in the face of uncertainty.
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