KAMA meme coin surge amid Biden statement on dropping re-election campaign
KAMA meme coin surge amid Biden statement on dropping re-election campaign
The crypto market experienced volatility following President Joe Biden's announcement that he would not seek re-election. The expected political development has had a mixed impact on the crypto sector, with Bitcoin seeing a decline while meme coins associated with Vice President Kamala Harris surged significantly.
As reported by Coindesk, on the day of Biden's announcement, July 22, Bitcoin's value dropped by 2.3%, reaching a low of around $65,885 before fast recovering to 68,000. Analysts attributed this decline to market temporary uncertainty about Biden's potential successor and their stance on cryptocurrencies.
According to Noelle Acheson, an analyst, "there's a higher chance of his replacement defeating Trump in November," a scenario perceived as less favorable for crypto overall.
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In contrast, some PolitiFi coins reacted positively to the news. In particular, the memecoin Kamala Horris (KAMA) skyrocketed 131% and Doland Tremp (TREMP) rose 30%. However, Jeo Boden (BODEN) fell by 59%. These fluctuations highlight the growing intersection between politics and the cryptocurrency market.
Biden's decision has also reignited discussions about the crypto policies of potential presidential candidates. While former President Donald Trump has emerged as a vocal proponent of cryptocurrencies, positioning himself as a pro-crypto candidate, Kamala Harris' stance remains ambiguous. Despite her strong ties to the tech sector, she has not publicly articulated her views on cryptocurrencies.
Political betting markets have responded swiftly to these developments. On Polymarket, a leading crypto-powered betting site, the odds of Harris becoming the Democratic nominee have soared to 82%, reflecting market confidence in her candidacy. In contrast, former First Lady Michelle Obama is seen as a distant runner-up with only a 4% chance of securing the nomination.
As the 2024 presidential race unfolds, the crypto market is likely to remain highly sensitive to political developments, with potential implications for both investors and policymakers.
The candidates' positions on regulation, innovation, and integration of digital currencies could shape the future trajectory of the market.
See also: Kraken expands Crypto Custody service to UK and Australia
