On Sunday, the price of Bitcoin suffered a sudden drop that sent people like Dogecoin and Shiba Inu spiraling beside him. This accident generated $2,000 eliminated the price of Bitcoin within minutes, dropping below $66,000. While this decline didn’t last at the time, there were a few factors behind it that caused concern among crypto investors across the space.
Why did the price of Bitcoin fall?
The Bitcoin price drop below $66,000 had one major factor behind it and that was the US President Joe Biden. The war between President Joe Biden and former US President Donald Trump has been ongoing for months, with both being the main candidates for the position.
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However, on Sunday, President Joe Biden made a shocking announcement, announcing that he was officially withdrawing from the presidential race. In the announcement on Twitter, which has so far garnered over 330 million views, Biden said he would prioritize his duties as president for the remainder of his current four-year term by rejecting the Democratic Party nomination.
In the same announcement, President Biden offered his support for the Vice President Kamala Harristo take over the Democratic Party’s presidential ticket. He also called on party supporters to unite and defeat Donald Trump, who is the strongest opponent so far.
-Joe Biden (@JoeBiden) July 21, 2024
Following the announcement, the crypto market responded quickly, with the price of Bitcoin plummeting dramatically. At the same time, coins like Dogecoin and Shiba Inu followed suit, dropping around 3% each in response to the announcement.
Dogecoin and Shiba Inu refuse to stay down
Just like the price drop, Bitcoin’s recovery was equally swift, reaching new monthly highs. The the price eventually surpassed $68,000 on Sunday, taking the crypto market with it. In response, Dogecoin and Shiba Inu followed, making notable gains from their lows.
For Dogecoin, the price surged above $0.14 after falling below $0.128. This caused its overall daily gains at the time to rise above 4%, with its daily trading volume also seeing a significant increase above $20 billion in a day.
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In the same vein, the price of Shiba Inu also rose from its lows of $0.0000173 to climb above $0.0000184. However, unlike Dogecoin, Shiba Inu’s daily trading volume remains low at around $383 million at the time.
As for the price of Bitcoincontinues to lead the market higher, still holding the $67,000 support after the recovery. This translates into an increase of approximately 12% in the cryptocurrency’s price over the past seven days.
Featured image created with Dall.E, chart from Tradingview.com