On Sunday evening, US President Joseph Biden announced his not-so-surprising exit from the 2024 Presidential race, saying it was in “the best interest of [his] party and the country.” He also endorsed Vice President Kamala Harris's bid to run against the popular former US President Donald Trump, the Republican candidate.
Although Harris is a known political face—she ran with Biden for the Vice President post in 2020 and won—it is still being determined how the markets will react in the coming weeks. Notably, it is not confirmed whether Harris would represent Democrats in the race against Republican Trump. However, Biden’s endorsement has made her the top candidate for the race.
My fellow Democrats, I have decided not to accept the nomination and to focus all my energies on my duties as President for the remainder of my term. My very first decision as the party nominee in 2020 was to pick Kamala Harris as my Vice President. And it’s been the best… pic.twitter.com/x8DnvuImJV
— Joe Biden (@JoeBiden) July 21, 2024
The Uncertainty Looms
Markets do not like instability other than bad policies. In a race between Biden and Trump, the Republican candidate had become a favorite, not only due to his populist moves but also because the sitting President's health concerns that affected his public appearances.
While Trump is very vocal about his policies regarding corporations and even cryptocurrencies, which have become a hot election topic, Harris’ views remain unknown.
Joe Biden has served our country with honor and dignity.
— Bernie Sanders (@BernieSanders) July 21, 2024
As the first president to ever walk on a picket line with striking workers, he has been the most pro-working class president in modern American history.
Thank you, Mr. President, for all you’ve done.
“I don’t see more upside in the market with Kamala at the top of the ticket, I can’t see the market liking her,” the New York Post quoted an anonymous high-net-worth individual. “She’s not stable.”
Josh Thompson, CEO of Impact Health USA, also told Yahoo Finance that the immediate market reaction to Biden’s stepping down and endorsement of Harris “would likely be one of volatility and uncertainty… Investors generally prefer stability and predictability, and such a significant political shift would disrupt both.”
I believe in an America that maximizes individual freedom and merit.
— Elon Musk (@elonmusk) July 21, 2024
That used to be the Democratic Party, but now the pendulum has swung to the Republican Party.
Will Crypto Decide the US Elections?
When it comes to cryptocurrencies, Harris has never publicly shared her views. She is currently vice president but has never taken a stand on the widely discussed topics about digital currencies, tokenization, blockchain, or non-fungible tokens (NFTs).
Meanwhile, Trump is going ballistic with his pro-crypto views. He attended multiple Bitcoin conferences and pitched himself as the first “crypto President,” pledging to save the 50 million Americans who own cryptocurrencies from “Elizabeth Warren and her goons.” He even said he would ensure that “all the remaining bitcoin [is] MADE IN THE USA!!!”
His Vice President pick, JD Vance, is also a Bitcoin holder. According to Vance’s financial disclosure to the Senate, he holds somewhere between $136,000 and $390,000 worth of cryptocurrencies. He also moved a bill that would protect cryptocurrency firms and exchanges from being cut off by traditional banks.
Harris is also considered one of the tech-friendly Democrats. However, she has never spoken about blockchain, the ‘promising’ technology behind cryptocurrencies. Notably, she had raised concerns over the growing use of artificial intelligence (AI). Interestingly, according to her White House financial disclosure for 2023, Harris and her husband do not hold any cryptocurrencies in their multi-million dollar investment portfolio.
Meanwhile, Bitcoin prices have not budged since Biden withdrew his candidature and endorsed Harris. The cryptocurrency gained about 7.5 percent in the last seven days and is trading above $67,600 apiece as of press time. Interestingly, the $KAMA meme token, which is based on Harris, soared to an all-time high after Biden endorsed her.
Biden: drops out of the race, endorsing VP Kamala Harris
— Tal Shmuel Harel (@TalHarelTal) July 21, 2024
Crypto: new token go moon pic.twitter.com/izB1djwYpm
Furthermore, 29 percent of the bettors on Polymarket, the crypto-based prediction platform, envision her becoming the next US President, compared to 64 percent who favor Trump.
