On Sunday, the bitcoin price suffered a sudden crash that sent Dogecoin and Shiba Inu plummeting along with it. This drop saw the bitcoin price lose $2,000 in a matter of minutes, taking it back below $66,000. While this drop did not last at the time, there were a few factors behind it, which inflicted concern on cryptocurrency investors across the space.
Why did the price of bitcoin fall?
The fall of the bitcoin price below $66,000 had one major factor behind it, and that was US President Joe Biden. For months now, the war between President Joe Biden and former US President Donald Trump has been going on, with the two being the leading candidates for the office.
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However, on Sunday, President Joe Biden made a shocking revelation: he announced that he was officially withdrawing from the presidential race. In the announcement on x (formerly twitter), which has so far garnered more than 330 million views, Biden said he was going to prioritize his duties as president for the remainder of his current 4-year term, declining the Democratic Party's nomination.
In the same announcement, President Biden offered his support to Vice President Kamala Harris to run for the Democratic Party's presidential nomination. He also urged party supporters to unite and defeat Donald Trump, who is the strongest opponent so far.
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— Joe Biden (@JoeBiden) twitter.com/JoeBiden/status/1815080881981190320?ref_src=twsrc%5Etfw” rel=”nofollow”>July 21, 2024
Following the announcement, the cryptocurrency market responded quickly and the price of bitcoin plummeted 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
Much like the price drop, bitcoin’s recovery was just as swift, hitting new monthly highs. The price eventually broke above $68,000 on Sunday, sweeping the cryptocurrency market. In response, Dogecoin and Shiba Inu followed suit, making notable gains from their lows.
In the case of Dogecoin, the price rose back above $0.14 after falling below $0.128. This caused its total daily gains at the time to skyrocket above 4%, and its daily trading volume also saw a significant increase above $20 billion in one day.
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Along the same lines, Shiba Inu’s price also rose from its lows of $0.0000173 to surpass $0.0000184. However, unlike Dogecoin, Shiba Inu’s daily trading volume remains low, at around $383 million at the time.
As for the bitcoin price, it continues to lead the market rally, still holding the $67,000 support after the recovery. This translates to an increase of approximately 12% in the price of the cryptocurrency in the last seven days.
Featured image created with Dall.E, chart from Tradingview.com
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