Leading cryptocurrency Bitcoin experienced a brief decline after US President Joe Biden announced that he will not seek a second term.
However, this decline was short-lived. While BTC rose above the level before the decline, it rose to $ 68,400 levels earlier today.
Although some analysts state that Biden's withdrawal from the 2024 presidential elections is a major catalyst for Bitcoin, some analysts also warn investors.
Describing Biden's withdrawal as “a victory for cryptocurrencies”, eToro market analyst Josh Gilbert stated that Trump's chances of re-election increased with this decision of Biden.
Stating that Biden's withdrawal means a great support for Bitcoin and the cryptocurrency industry, Gilbert continued his words as follows:
“As long as we see Trump continue to stay ahead in the election odds, cryptocurrencies will further price in his victory.
It's hard to think Kamala Harris or any other Democratic candidate can overcome Trump's lead in the polls with just three months left in this race. But a lot can happen in that time frame, so nothing is out of the question.”
Gilbert also said that he expects the Bitcoin price to rise further following the upcoming launch of spot Ethereum ETFs, noting that ETFs in the US have been one of the main catalysts for the market-wide rise.
10X Research founder Markus Thielen also stated that he expects an increase and stated that there may be a parabolic rise in BTC in the short term with Trump's speech at the Bitcoin conference in Nashville.
Analysts Warn Bitcoin Investors!
However, some analysts think that Biden's decision to withdraw may not lead to a sudden increase in cryptocurrencies.
On this issue, Swyftx analyst Pav Hundal said that Biden's withdrawal may increase Trump's chances, but it will be difficult to correlate this directly with the current price movements in the cryptocurrency market and warned investors.
“Learning from the Bitcoin ETF experience, we may see a temporary pause in prices before the uptrend resumes.
“This recent surge can be attributed to early Ethereum ETF speculation, and it is important for investors to remain cautious and not get overly excited about the short-term rise.”
Gary Black, managing partner of The Future Fund, also warned his followers that Trump's presidential victory is not yet certain.
“Those who think Trump/Vance will win overwhelmingly are getting carried away,” Black wrote in his “They may nominate a Democrat as their presidential candidate. It's too early to have such a high confidence that Trump will be president for a second term.” said.
*This is not investment advice.