Joe Biden Pulls Out Of The Race: How Did The Crypto World React?

The news had been expected for a few days, but the official announcement came only yesterday, Sunday 21 July. The challenger to the front-runner Donald Trump in the now upcoming US presidential election in November will not be Joe Biden, but another candidate, or another candidate. expressed or expressed by the Democratic convention in August. In all likelihood, the relay will be taken over by Biden's current deputy, Kamala Harris, but there are also other names in the mix.

The announcement by now former candidate Joe Biden came via X, the former Twitter, and immediately echoed around the world. Even the cryptocurrency industry took notice. The reaction of Bitcoin and other cryptos has been quite nervous. At first, we saw a slump, then there was a good rebound, and finally the situation stabilised again. At the time of writing, BTC's values are in line with those of the last few days, before the news of Joe Biden's retirement came.

The Correction of Bitcoin and the Other Cryptocurrencies

The decision was announced late Sunday (US) morning. Joe Biden acknowledged the weak position of his campaign and the fact that he was facing not only an electoral defeat, which is part of the game, but a full-blown defeat across the board, which would not only result in the loss of the White House, but also both chambers.

The news caused tension. The markets interpreted the news negatively, as a change of candidate can mean political and, consequently, financial instability. All cryptocurrencies declined, starting with Bitcoin, which was steadily above $67,000 on Sunday morning and reached below $66,000 by mid-afternoon. Then there was a rebound and the worries receded.

Joe Biden, Donald Trump and Cryptocurrencies in Election Campaign

Cryptocurrencies are a theme in this election campaign. Given the many concerns in the US, it is not a central topic, but it undoubtedly interests many people and is a front where votes can be gained or lost. Both Trump and Biden, perhaps for reasons of age, have never looked too kindly on decentralised finance and the Web3. In recent times, however, the Republican candidate has changed his mind. Today he shows himself to be a friend of the industry and investors. It is no coincidence that this weekend he will be a guest speaker at Bitcoin 2024, one of the world's most prestigious ambit conferences, scheduled to take place in Nashville.

Last May, Trump publicly pledged to support and revitalise the industry, should he be elected. On the opposite front, Biden has never been too outspoken but, in his own party, there are voices such as that of Elizabeth Warren (progressive governor of Massachusetts, rather far from the outgoing president's positions but a Democrat like him) who are openly opposed to the very concept of cryptocurrency. From the former president's speech onwards, the entire Web3 infrastructure has entered the US political debate through the front door.

The Importance of the Dem Candidate

The Democrats have achieved their aim, that of Joe Biden's step back, but now find themselves having to propose another valid ticket (the president and vice-president pairing) that can face Trump without passing as a sacrificial victim. There are just over three months left in the run-up, and it will be necessary to make up the slack that has accrued in these weeks of incrementality.

Analysts are convinced that a candidate close to the crypto system could lead to shocks and instability until early November in the token markets. Harris has never said she is against it, although she has also never defended DeFi to the hilt. It will now have to be seen how her deputy will be aligned. The investiture of the current second-in-command, however, has comforted the market, so much so that as this article is being written the value of BitCoin is firmly back above $67,000.

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