Key Points
- Bitcoin traded above $68,000 following the Biden news.
- US politics is still correlated with the crypto market, Santiment notes.
The US politics still has a tight hold on the crypto market, according to the latest reports from Santiment.
In a new post on X, the market intelligence platform noted that the news of Joe Biden’s rejection of the democratic representation in the upcoming US elections triggered an immediate small panic drop in crypto prices.
On Sunday, Bitcoin was trading above $67,500, and the price of the coin dropped near $66,000, according to data on CoinMarketCap.
Santiment also noted that throughout the closing hours of Sunday, prices quickly bounced back following the initial drop, reaching prices of over $68,400, following the Biden news.
At the moment of writing this article, BTC is trading above $67,000, and the market shows increased volatility at the beginning of this week.
The same post also highlighted that during the July 13 weekend, on widely different circumstances, the news of the Donald Trump failed assassination attempt caused a similar price pattern.
Two weeks ago, Trump-related digital assets saw intense volatility following the unfortunate event.
US Politics Still Correlated With Crypto Markets
In the same post, Santiment also said that Biden’s endorsement of Kamala Harris should be seen as a signal that any news of her or other potential replacement candidates will be trending topics that could potentially affect the crypto markets.
According to them, regardless of people’s own vested interest or indifference regarding US politics, the social volume of the major topics continues to prove the existence of fragile correlations with crypto prices driven by speculation.
Santiment also shared a graph showing that Biden’s withdrawal from the 2024 Presidential race proves the correlation of US politics with crypto. The graph also reveals mentions of “Biden” and “Harris” related keywords in the top ten chart of Sanbase Pro.
The crypto market’s volatility is triggered by multiple factors at the beginning of this week, including the anticipated launch of US-based Ethereum ETFs, and the upcoming Bitcoin Conference this Thursday which will see Trump attending the speech, as confirmed by Greeks.live.
However, the market’s overall conditions have improved during the second half of the month.
