Bitcoin Dips on Biden News, Harris-Inspired Memecoin Soars 131%
US President Joe Biden’s surprising announcement that he will not seek re-election has caused a stir in the markets. Biden stated that it is in the best interest of his party and the country for him to step aside and focus on his duties as President for the remainder of his term. He endorsed Vice President Kamala Harris as his potential successor.
Following this news, Bitcoin experienced a 2.3% drop to $65,885 in weekend trading before recovering to around $67,002 in London at 7:45 pm. Analysts attributed this drop to the perception that Harris has a higher chance of defeating Trump in the upcoming election, which is seen as less favorable for the overall crypto market.
In response to Biden’s announcement, political memecoins saw significant movements. Doland Tremp, a memecoin based on Donald Trump, surged by 30% to approximately 55 cents, while Jeo Boden, a play on the president’s name, plummeted by 59% to about one cent.
Kamala Horris, a token associated with Vice President Harris, saw a remarkable 131% increase in value. Trump has been viewed as a crypto-friendly candidate this year, especially as the Securities and Exchange Commission under Gary Gensler has been cracking down on the industry. However, Harris’s stance on crypto remains unclear as she has not officially addressed the industry.
Despite this ambiguity, Harris has strong connections to the technology sector. Political memecoins have highlighted the increasing influence of crypto in elections, with industry insiders speculating on how the November vote could propel Bitcoin to new heights.
The crypto industry has actively engaged with policymakers in Washington, resulting in a more positive reception towards crypto among politicians and the passing of pro-crypto legislation by Congress. The ongoing presidential race has been tumultuous, featuring criminal convictions, a chaotic debate, crypto endorsements, and an assassination attempt, making crypto a significant election issue.
Former President Trump has positioned himself as a pro-crypto candidate, garnering support from industry figures like the founders of a16z and Messari founder Ryan Selkis. On the other hand, Biden was initially perceived as anti-crypto, but there were indications of a potential pivot before his decision not to seek re-election.
According to a bet on Polymarket, there is an 82% chance of Harris becoming the Democratic nominee, with former First Lady Michelle Obama trailing with a 4% probability. The landscape of the upcoming election continues to evolve, with crypto playing an increasingly prominent role in the political arena.
