Cryptocurrency Market Reacts to Biden’s Decision Not to Run for Second Term

The cryptocurrency market experienced a whirlwind of activity following the news that US President Joe Biden will not seek a second term in office. Memecoins tied to Biden and his family members saw significant drops in value, with tokens associated with Joe Biden, Jill Biden, and Hunter Biden plummeting by 80%, 46%, and 62% respectively.

Investors were quick to react to the announcement, reflecting the market’s sensitivity to political developments. The $10 billion loss in market capitalization for the token linked to Joe Biden, Jeo Boden, highlighted the impact of Biden’s decision on the cryptocurrency market.

In contrast, the memecoin associated with Vice President Kamala Harris, Kamala Horris (KAMA), saw a surge of 133% in value. Speculation that Harris may become the Democratic nominee for president fueled the increase, leading to an all-time high price of $0.02571 before cooling off slightly.

Industry experts, including Ripple CTO David Schwartz, weighed in on the potential shift in Democratic crypto policies following Biden’s announcement. There is anticipation that the new Democratic nominee may adopt a more favorable stance towards cryptocurrencies, which could impact the regulatory environment for digital assets.

Additionally, the possible resignation of SEC Chair Gary Gensler with a change in administration could signal a turning point for cryptocurrency regulation. Analysts predict that Gensler may step down if the new leadership takes a pro-crypto stance, introducing further uncertainty to the regulatory outlook.

As the crypto market continues to react to global events and political developments, investors are advised to stay informed and monitor how these changes may impact the future of digital assets. The volatile nature of memecoins linked to political figures underscores the need for caution and awareness in this rapidly evolving market.