President Joe Biden announced on Sunday that he is dropping out of the 2024 presidential race, sending cryptocurrencies linked to the outgoing Democratic candidate into a tailspin. The decision had a major impact on the cryptocurrency market and prediction platforms like Polymarket.
After announcing his withdrawal, Biden announced his endorsement of his running mate Kamala Harris (NYSE:LHX) to succeed him as the Democratic Party's candidate for the US presidential election.
Harris coin jumps
President Biden announced his departure on Twitter in a tweet posted on his personal account. As a result, prediction platforms saw a lot of activity. Some traders, who predicted Biden’s exit, made big profits.
For example, one trader made a whopping 100 times as news of Biden’s decision spread. Another saw a return of nearly $196,102 on an initial bet of $38,160 on Biden withdrawing.
However, not all traders were successful; a user known as AnonBidenBull lost around $2 million by betting that Biden would continue to be nominated.
Moreover, Biden-themed tokens, including those named after his family members, have dropped by more than 60%. The Jeo Boden (BODEN) token dropped by 60.11% in the 24 hours following his announcement. The drop wiped out nearly $10 million from its market cap, which was around $15 million just days ago.
In contrast, coins linked to his running mate Kamala Harris, such as Kamala Horris (KAMA), have surged 80% amid speculation she could be the next Democratic nominee.
This sharp market response highlights the volatile nature of meme coins, which often react strongly to news and public perceptions. Investors in these tokens typically face extreme risks, as their value can fluctuate dramatically based on political climate and news.
Although Biden did not cite health reasons for his decision—despite recently testing positive for Covid-19—the political implications are clear. Kamala Harris’s chances of winning the US presidential election have now risen to 29%.
According to Polly Market data, Donald Trump continues to hold the top spot, with a 64% chance of winning the election.
