Nearly $67 million in leveraged long positions were liquidated from the cryptocurrency market within 30 minutes following the unexpected announcement of U.S. President Joe Biden’s withdrawal from the 2024 presidential race.
The dramatic liquidations, occurring between 5:30 pm and 6:00 pm UTC on July 21, were triggered by a sudden 2.3% drop in Bitcoin’s price to $65,880, according to CoinGlass. However, Bitcoin quickly rebounded, reaching a 24-hour high of $68,480, resulting in traders with leveraged short positions losing a combined $34 million.
Markus Thielen, founder of cryptocurrency firm 10x Research, commented, “Biden’s lack of credibility to beat Trump left the market uncertain. The absence of a strong alternative candidate spurred a BTC pump.” He added that a substantial buy order also hit the market around that time, aiding the sharp recovery.
Over a 12-hour span, more than $81.1 million in long positions and $53.4 million in short positions were liquidated between 10:00 am and 10:00 pm on July 21. The liquidations included $43.8 million in Bitcoin, $31.1 million in Ether, and $8.6 million in Solana. The total combined liquidations of $134.5 million marked the highest 12-hour liquidation period since July 8.
Most of these liquidations occurred on Binance and OKX, with total values of $64.5 million and $44 million, respectively. In light of Biden’s withdrawal, U.S. Vice President Kamala Harris is considered the likely replacement for the Democratic Party’s presidential nominee.
This sudden market shift underscores the volatile nature of cryptocurrency markets and the significant impact of major political developments on digital asset prices.
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