Bitcoin Price Swings on Biden Surprise, Rebounds on Kamala Harris News

The price of Bitcoin (BTC) experienced a rollercoaster ride on July 22nd, 2024, following a series of unexpected political developments.

Initial Price Drop on Biden Announcement

The market reacted negatively to the news of President Joe Biden withdrawing from the 2024 presidential race. Bitcoin’s price plummeted by roughly 2.5%, dropping from $67,422.03 to a low of $65,900. This decline stemmed from investor concerns that a new candidate, potentially stronger than former President Donald Trump who is pro-crypto, might emerge.

Market Reversal with Harris Nomination

However, the market sentiment reversed course rapidly after President Biden announced Vice President Kamala Harris as his replacement. Perceived as a less significant threat to the crypto-friendly policies of the Trump administration, Harris’ nomination alleviated investor anxieties and triggered a swift recovery in Bitcoin’s price. Within a short timeframe, Bitcoin returned to pre-announcement levels, hovering around $67,336.00.

Beyond the Headlines: Global Liquidity and Bitcoin’s Future

The article can be further enhanced by incorporating the following information about Bitcoin’s future prospects:

• Global Liquidity: Bitcoin’s price movements are intricately linked to global liquidity, measured by M2 (cash, public equities, government bonds, etc.). Periods of rising M2 liquidity tend to coincide with Bitcoin price increases, while drops in M2 correlate with price decreases.
• US and China: The Federal Reserve’s tightening measures and reduced liquidity injections might lead to a temporary decrease in Bitcoin’s price. However, expectations for rate cuts later in 2024 could signal a potential rise in liquidity in the second half of the year, potentially benefiting Bitcoin. On the other hand, China’s economic struggles might limit its contribution to global liquidity growth.
• Bond Markets: Bond market volatility remains high, indicating market uncertainty. Despite a slight increase in global liquidity year-to-date, an overall upward trend is anticipated in the latter half of 2024, potentially impacting Bitcoin positively.
• Institutional Investors: The flow of money from traditional markets to crypto significantly influences Bitcoin’s price. Factors like inflows into Bitcoin ETFs and investment strategies of companies like MicroStrategy can offer insights.
• Bitcoin Whales: The recent decrease in selling activity by large Bitcoin investors suggests positive momentum for the cryptocurrency.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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