TL;DR
- President Joe Biden announced he won’t compete in the US presidential elections, endorsing Vice President Kamala Harris as the Democratic nominee.
- The decision caused volatility in the cryptocurrency market, with Biden-related meme coins dropping and a Harris-related token surging by nearly 90%.
The Biden Effect
The current President of the United States, Joe Biden, made headlines on July 21 after announcing he won’t seek re-election in November this year. His decision followed the uproar from numerous high-profile members of the Democratic party who urged him to stay out of the battle due to his unsatisfactory performance in the public debate against Donald Trump last month.
In addition, several reports revealed that the POTUS tested positive for COVID-19 a few days ago, another setback adding to his seemingly worrying health condition as of late.
Vice President Kamala Harris received Biden’s backing to take his place as the Democratic nominee in the elections. Many party members reportedly supported the choice.
Market Reaction
Somewhat expected, Biden’s disclosure had a huge impact on the cryptocurrency market, particularly the meme coin realm. Tokens related to the current political leader, such as Jeo Boden (BODEN), plunged by double digits.
On the other hand, Kamala Horris (KAMA) – a meme coin related to the VP – exploded by nearly 90% to reach an all-time high of over $0.02.
MAGA (TRUMP) – an asset linked to the Republican candidate Donald Trump – experienced enhanced volatility, too. Its price soared substantially minutes after the announcement but started retracing in the past few hours. Currently, it trades at around $6.80 (per CoinGecko’s data), a 7% decline on a 24-hour scale.
Beware the Risks Involved
The huge volatility witnessed by the aforementioned meme coins comes as another warning that traders should approach the sector after proper due diligence and invest only as much as they are ready to lose.
While there are numerous examples of people becoming millionaires in a short period of time due to the price explosion of a certain meme coin, there are also those who suffered crucial financial losses after entering the ecosystem at the wrong moment.
Those who are about to hop on the bandwagon should take a look at our dedicated video to protect themselves from some common mistakes related to the matter:
Conclusion
In conclusion, the cryptocurrency market has been affected by the decision of President Joe Biden not to compete in the US presidential elections. The market reaction was significant, with Biden-related meme coins experiencing a decline and a Harris-related token surging in value.
It is essential to approach the cryptocurrency market with caution, especially when it comes to meme coins. The risks involved are significant, and it is crucial to do proper due diligence before investing in any asset.
FAQs
Q: Why did President Joe Biden decide not to run for re-election?
A: President Biden’s decision not to run for re-election was reportedly due to his unsatisfactory performance in the public debate against Donald Trump last month and the uproar from numerous high-profile members of the Democratic party who urged him to stay out of the battle.
Q: What is the current market value of MAGA (TRUMP) coin?
A: The current market value of MAGA (TRUMP) coin is around $6.80 (per CoinGecko’s data), a 7% decline on a 24-hour scale.
Q: Why is it essential to approach the cryptocurrency market with caution?
A: It is essential to approach the cryptocurrency market with caution because of the significant risks involved. The market can be highly volatile, and investments can result in substantial financial losses.
Q: What is the best way to protect oneself from common mistakes related to cryptocurrency investments?
A: The best way to protect oneself from common mistakes related to cryptocurrency investments is to do proper due diligence, invest only as much as you are ready to lose, and consider seeking professional advice if necessary.
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