Bitcoin Price Drops Near $63K Amid Growing Speculation of Biden Withdrawal

Cryptocurrency markets saw another day of declines on Wednesday, mirroring a downward trend in U.S. stock prices and amid widespread speculation surrounding the ongoing presidential election. Bitcoin (BTC) experienced a sharp drop from $65,000 to $63,500 within a span of two hours during mid-morning U.S. trading, marking a 1.7% decrease over the previous 24 hours. Ether (ETH) and Solana’s native token (SOL) fared slightly better, each showing declines of just over 1%.

Smaller digital assets faced more significant drops, leading to a 2.8% decline in the Coindesk 20 Index (CD20). Ripple’s XRP, Polkadot’s DOT, Cardano’s ADA, and Polygon’s MATIC all saw decreases ranging from 5% to 6%. These price movements coincided with ongoing struggles in the U.S. equities market, with the Nasdaq 100 down 1% and the S&P 500 down 0.7%.

Uncertainty surrounding the U.S. presidential election escalated as reports surfaced about mounting pressure on President Biden not to seek re-election. Traders on the crypto prediction market Polymarket now indicate an 80% probability of Biden dropping out, up from 40% the day before. Concurrently, the odds of Vice President Kamala Harris becoming the Democratic nominee surged to 63% from 15% in the previous day.

Conversely, the likelihood of GOP nominee Donald Trump winning the election slightly decreased on Polymarket to 65%, down from a peak of 70% following a recent assassination attempt. The recent rally in crypto prices was partly driven by investor optimism surrounding the potential for a Trump victory and the resultant crypto-friendly policies in the U.S.

The broader market movements reflect the intertwined nature of cryptocurrency and traditional financial markets, with political developments playing a significant role in shaping investor sentiment across various asset classes. The ongoing volatility underscores the importance of closely monitoring both macroeconomic trends and political events for anyone involved in the cryptocurrency space.

This article was edited by Stephen Alpher and written by Krisztian Sandor, a reporter covering U.S. markets with a focus on stablecoins and institutional investment. Sandor holds positions in BTC and ETH. Follow @sndr_krisztian on Twitter for more insights on the cryptocurrency market.