The cryptocurrency market experienced a slight rise in Bitcoin price on Monday, following a sharp rally over the weekend. The stability came amidst news of President Joe Biden dropping his reelection bid, leading to increased uncertainty over the U.S. political outlook. Bitcoin, the world’s largest cryptocurrency, saw a 0.9% increase in the past 24 hours, reaching $67,622.5 by 02:00 ET (06:00 GMT). While the token had reached $69,000 over the weekend, it pulled back on Monday as the market reacted to Biden’s decision.
The recent rally in cryptocurrency prices has been driven by growing bets on Republican frontrunner Donald Trump winning a second term. Trump has displayed a pro-crypto stance, which has garnered support from the industry. The prospect of a Trump presidency has been a major driver of Bitcoin’s recent surge, with Trump set to speak at the Bitcoin Conference in July. Additionally, Trump’s acceptance of crypto donations has further fueled optimism in the market.
The announcement of Vice President Kamala Harris as the Democratic presidential nominee following Biden’s endorsement has added a layer of uncertainty to the market. While Harris is yet to be officially nominated at the Democratic National Convention, the support she has garnered from top Democrats has raised speculation on her candidacy. Trump’s comments on Harris being easier to defeat have impacted market sentiment, leading to a slight dampening of optimism over a potential Trump presidency.
Bitcoin traders are also closely monitoring distributions by the defunct exchange Mt Gox, which mobilized billions of dollars worth of Bitcoin earlier in July. The uncertainty surrounding these distributions has added to the cautious trading environment in the market. Additionally, major altcoins have mostly traded steadily, tracking Bitcoin’s movements over the weekend. Ether, the world’s second-largest token, fell by 0.3% to $3,491.74, with a focus on the approval of a spot Ether exchange-traded fund for U.S. markets. Reports suggest that a spot ETF could start trading as early as this week, further shaping market dynamics for altcoins.
The cryptocurrency market is navigating through increased uncertainty over the U.S. political landscape, with investors closely monitoring developments in the presidential race. The varying dynamics between potential Trump and Harris presidencies are shaping market sentiment, while external factors such as Mt Gox distributions and altcoin performance are adding to the volatility in the market. As the market continues to react to political and regulatory developments, traders are advised to stay vigilant and adapt their strategies accordingly.