After President Joe Biden announced that he would not seek re-election, Bitcoin’s price surged above $68,000 before settling around $67,500 during early trading hours on Monday. This surge was propelled by positive U.S. election predictions and has significantly impacted the cryptocurrency market.

President Biden’s decision not to contest the upcoming election is being viewed as potentially favourable for the digital asset industry, regardless of the election outcome.

This news has sparked bullish sentiment among traders and has driven substantial gains in the cryptocurrency market. Market analysts believe that this development could lead to a more constructive approach towards the digital asset industry from the U.S. government post-November.

Following the news, Bitcoin briefly rose above $68,000 before stabilising at $67,500. Major cryptocurrencies also experienced gains, with Ether (ETH) crossing $3,500, Cardano’s ADA and Solana’s SOL rising by up to 5%.

Dogecoin (DOGE) jumping more than 8% before paring gains. The broader crypto market, as represented by the CoinDesk 20 index, also saw a 1.25% increase.

Within 24 hours, a Solana-based meme token called Kamala Horris (KAMA) surged over 78%, reflecting the market’s immediate response to the news.

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Conversely, crypto coins linked to the Biden family experienced a steep decline, indicating the sensitivity of the market to political developments.

This abrupt and substantial shift in value underscores the intertwined relationship between political events and cryptocurrency markets, highlighting the need for investors to stay informed and adaptable in response to such developments.

In addition to impacting the cryptocurrency market, President Biden’s announcement has had a notable impact on the odds for the upcoming election.

It dropped the odds for Republican candidate Donald Trump from 71% on Sunday to 65% on Monday morning on the crypto betting platform Polymarket, while the odds for Vice President Kamala Harris rose from 16% to 30%.

Furthermore, President Trump’s favourable view of cryptocurrencies has garnered significant support from industry players. His upcoming speech at the Bitcoin 2024 conference in Nashville is expected to further boost market sentiment.

Many industry analysts expect the market to rally higher as a result of President Trump’s key economic policy, which would likely lead to lower interest rates and cheaper borrowing costs, ultimately boosting all risky assets, including BTC.

Undoubtedly, President Biden’s decision not to seek re-election has not only driven significant gains in the cryptocurrency market but has also impacted the odds for the upcoming election.

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This created an atmosphere of optimism and optionality within the industry regarding the future stance of the U.S. government towards the digital asset industry.

As the market continues to react to these political developments, investors are closely monitoring the potential implications for Bitcoin and other cryptocurrencies.

With the uncertainty surrounding the upcoming election and the possibility of new regulations being implemented, there is a sense of cautious optimism among market participants.

Additionally, the growing acceptance of digital assets by mainstream financial institutions and the increasing adoption of blockchain technology are further fueling the bullish sentiment in the cryptocurrency space.