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Biden’s Exit and Harris’s Rise Could Mean Short-Term Caution for Crypto Investors

Summary:
President Joe Biden’s withdrawal from the 2024 election race caused a significant stir in the crypto market. Bitcoin initially fell by 3% in response to the news but later recovered and even tapped a multi-week peak. According to Bitfinex analysts, this was a knee-jerk reaction to temporary uncertainty in the market. By Monday morning, Bitcoin had climbed 0.9% over the past 24 hours, reaching over ,000 for the first time since early June. Now all eyes are on what Vice-President Kamala Harris’s crypto policies will entail who secured the support of a majority of Democratic delegates to become the party’s nominee for President. Investors Cautious as Harris Takes Lead According to a statement to CryptoPotato, analysts at Bitfinex said that the impact of Biden stepping down

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President Joe Biden’s withdrawal from the 2024 election race caused a significant stir in the crypto market. Bitcoin initially fell by 3% in response to the news but later recovered and even tapped a multi-week peak.

According to Bitfinex analysts, this was a knee-jerk reaction to temporary uncertainty in the market. By Monday morning, Bitcoin had climbed 0.9% over the past 24 hours, reaching over $68,000 for the first time since early June.

Now all eyes are on what Vice-President Kamala Harris’s crypto policies will entail who secured the support of a majority of Democratic delegates to become the party’s nominee for President.

Investors Cautious as Harris Takes Lead

According to a statement to CryptoPotato, analysts at Bitfinex said that the impact of Biden stepping down and Harris taking the lead on the crypto market could be “multifaceted and is likely to be perceived as neutral to slightly negative in the short term due to the uncertainty and potential for policy changes.”

For one, Harris’s stance on crypto isn’t well-documented, which makes it tough to predict the exact impact. However, her political focus on consumer protection and financial regulation might suggest continued scrutiny of the crypto industry.

The existing administration has been relatively conservative with its focus on regulating the crypto market despite the launch of spot Bitcoin and Ethereum ETFs. If Harris continues this cautious regulatory approach, it may not be favorable for the market.

As such, analysts believe investors might adopt a “wait-and-see” approach until Harris’s policies become clearer. While talking about the effect of a contentious battle for the nomination on the crypto market, the Bitfinex analysts said,

“A contentious battle for the Democratic nomination could introduce significant uncertainty, potentially leading to market volatility. However, it is difficult to comment on a clear market direction as it would depend on how the market prices in odds of a Democrat or Republican win.”

An Opportunity for Harris?

In a recent conversation with Politico, Bitcoin proponent and billionaire investor Mark Cuban shared that Harris’s camp had contacted him with questions about crypto. He revealed that he had received multiple inquiries from her team about the asset class, which he viewed as a positive sign.

Cuban also emphasized that changing the policies would send a clear message, indicating that she is in control and receptive to new opportunities. By being “open, literally, for business,” Harris would demonstrate her willingness to embrace the industry to create a friendlier environment, especially since her rival and the Republican presidential nominee, Donald Trump, already seems to have a head start in that department.

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