On Sunday, the price of bitcoin plummeted, which caused spiraling declines for cryptocurrencies like Dogecoin and Shiba Inu. The crash saw the price of bitcoin drop by $2,000 in a matter of minutes, sending it below $66,000. While the decline didn’t last long, there were several factors behind it that raised concerns among crypto investors across the sector.
Why did the price of bitcoin drop?
There was one major factor behind the drop in bitcoin price below $66,000, and that was US President Joe Biden. For months, there had been a war between President Joe Biden and former US President Donald Trump, with both being the leading candidates for the position.
But on Sunday, President Joe Biden made a shocking revelation by announcing that he was officially dropping out of the presidential race. In an announcement on X (formerly Twitter) that has so far garnered more than 330 million views, Biden said he intends to prioritize his duties as president for the rest of his current four-year term, dwindling the Democratic Party nomination.
In the same announcement, President Biden offered his support to Vice President Kamala Harris to run for president of the Democratic Party. He also called on the party’s supporters to unite and defeat Donald Trump, who is the strongest opponent so far.
— Joe Biden (@JoeBiden) July 21, 2024
The cryptocurrency market reacted quickly after the announcement, with the price of Bitcoin falling sharply. 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 don’t want to stay at the bottom
Like the price drop, Bitcoin’s recovery was just as swift, reaching novel monthly highs. The price eventually topped $68,000 on Sunday, taking the cryptocurrency market with it. In response, Dogecoin and Shiba Inu followed suit, posting significant gains from their lows.
In the case of Dogecoin, the price rose back above $0.14 after falling below $0.128. As a result, total daily profits increased by over 4%, and daily trading volume increased significantly above $20 billion in a single day.
Similarly, the price of Shiba Inu has risen from a low of $0.0000173 to over $0.0000184. However, unlike Dogecoin, the daily trading volume of Shiba Inu remains compact at around $383 million.
As for Bitcoin price, it continues to lead the market rally, still holding support at $67,000 after a bounce. This translates to about a 12% escalate in the cryptocurrency’s price over the past seven days.
Featured image created with Dall.E, chart from Tradingview.com
