Bitcoin experienced a notable ascent, surpassing $67,000, after an initial spike beyond $68,000 on Sunday. This uptick occurred in the wake of President Biden’s announcement that he would not seek reelection. Following Biden’s declaration, Bitcoin initially dipped but swiftly rebounded to exceed $68,400, stabilizing around $67,450 at the time of writing, marking a 0.7% increase over the preceding 24 hours. The CoinDesk 20 Index (CD20), reflecting the broader digital asset landscape, climbed by 1.25%, with SOL and DOGE leading the surge with gains of approximately 4.3% and 5% respectively.

Biden’s exit from the 2024 race has impacted the political landscape significantly, reducing pro-crypto candidate Donald Trump’s likelihood of winning from 71% to 65% on Polymarket. Conversely, Vice President Kamala Harris’s chances have surged to 30% from a previous 16%. Despite the initial optimism from the market, which perceived Biden’s departure as potentially beneficial for the digital asset sector, a more nuanced view emerges. According to Presto, a Singapore-based crypto research firm, “Biden’s withdrawal has introduced a new dynamic wherein, irrespective of the new occupant of the White House, the U.S. government might adopt a more favorable posture towards the digital asset industry post-November.” However, the firm cautions that whether Harris or another candidate will pursue such a direction remains uncertain.

In a recent report, JPMorgan highlighted concerns about Bitcoin’s valuation, noting that its current price exceeds its production cost of $43,000. The bank suggested that any further price increases might be short-lived, citing a volatility-adjusted comparison to gold, which positions Bitcoin at $53,000—indicating it may be overpriced. Additionally, JPMorgan observed that recent weeks have seen weak momentum in Bitcoin futures, attributed to liquidations by creditors of Gemini, Mt. Gox, and the German government. Although these liquidations are anticipated to diminish this month, JPMorgan remains vigilant, anticipating a potential rebound in Bitcoin futures positioning at the Chicago Mercantile Exchange into August.