- The withdrawal of President Joe Biden from the 2024 presidential race caused significant liquidations in the futures markets.
- Approximately $67 million worth of long positions were liquidated within 30 minutes of Biden’s announcement.
- Noteworthy, Bitcoin experienced a sharp 2.3% decline, triggering major sell-offs, but later recovered significantly.
The announcement of President Biden’s withdrawal from the 2024 race has stirred substantial movements in the crypto futures market, causing significant liquidations.
Futures Market See Sharp Liquidations Following Biden’s Announcement
In the half-hour following President Joe Biden’s unexpected withdrawal from the 2024 presidential race, the crypto futures market saw unprecedented activity, with about $67 million in long positions liquidated. According to data from Coinglass, these liquidations occurred between 20:30 and 21:00 on July 21, coinciding with a sharp 2.3% drop in Bitcoin’s value, which tested the $65,880 mark.
Market Reactions and Price Movements
Despite the initial turmoil, Bitcoin managed a rapid recovery, surging to $68,480. This upward movement led to the liquidation of approximately $34 million in short positions. Markus Thielen, founder of 10x Research, commented, “Biden’s inability to reliably challenge Trump opened the door for another candidate, limiting Trump’s chances. However, with no convincing alternative, BTC prices moved upwards.”
Overall Liquidation Statistics
On July 21, between 01:00 and 01:00 the following day, over $81.1 million in long positions and more than $53.4 million in short positions were liquidated. Among these, Bitcoin accounted for $43.8 million, Ether for $31.1 million, and Solana saw $8.6 million in liquidations. The total 12-hour liquidation amounting to $134.5 million marked the largest figure since July 8.
New Democratic Candidate Speculations
With Biden stepping aside, Vice President Kamala Harris is seen as a likely Democratic candidate replacement. According to the prediction platform Polymarket, Republican candidate Donald Trump is currently favored to win the 2024 election with a 64% probability, followed by Harris at 31%.
Conclusion
The immediate aftermath of President Biden’s withdrawal from the 2024 race has clearly impacted the crypto futures markets, causing notable liquidations and sharp price movements. As political dynamics continue to evolve, crypto traders need to stay informed of such developments and make well-researched decisions. While the market has shown resilience, the political landscape remains a significant factor influencing future price directions.
