Joe Biden’s Exit and the Crypto Market’s Uncertainty over Kamala Harris’ Stance

On Sunday evening, US President Joe Biden announced that he would not be running in the 2024 Presidential race. He said this decision was in “the best interest of his party and the country.” He also endorsed Vice President Kamala Harris’s bid to run against former President Donald Trump, the Republican candidate.

Biden’s endorsement makes Harris the top candidate for the Democratic race, but her views on cryptocurrencies remain unknown. This has caused some market uncertainty.

 The Market’s Reaction

Markets dislike instability, which often leads to volatility. In a race between Biden and Trump, Trump was becoming a favourite due to Biden’s health concerns and Trump’s populist moves. 

While Trump is vocal about his support for cryptocurrencies, Harris has never publicly shared her views on digital currencies, blockchain, or NFTs. This lack of information creates uncertainty. Investors generally prefer stability and predictability, and a political shift can disrupt both.

Crypto and the Elections

Cryptocurrencies have become a hot topic in the elections. Trump has attended multiple Bitcoin conferences and pitched himself as the first “crypto President.” He promised to protect cryptocurrency holders and ensure that “all the remaining bitcoin is MADE IN THE USA!!!”

Trump’s Vice President pick, JD Vance, is also a Bitcoin holder and has supported bills protecting cryptocurrency firms from being cut off by traditional banks. 

On the other hand, Kamala Harris is known as a tech-friendly Democrat but has raised concerns over AI rather than cryptocurrencies. According to her 2023 financial disclosure, neither she nor her husband holds any cryptocurrencies.

Since Biden’s announcement and endorsement of Kamala Harris, Bitcoin prices have remained stable, gaining about 7.5 per cent in the last seven days and trading above $67,600. The $KAMA meme token, based on Harris, soared to an all-time high after Biden’s endorsement.

On Polymarket, a crypto-based prediction platform, 29 per cent of bettors think Kamala Harris will become the next US President, while 64 per cent favour Trump. The market remains in a state of watchful waiting as more information about Kamala Harris’s stance on cryptocurrencies unfolds.