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Amid polls rising in favor of former President and Republican nominee Donald Trump over Vice President Kamala Harris, expectations have risen for a further recovery in the price of Bitcoin, but the rally seen in late September and the first weeks of October has faded, with experts attributing this to tightening financial conditions that could affect… The broader cryptocurrency market.
How the Trump campaign and rising yields are affecting the price of Bitcoin
According to the latest Bloomberg a reportBitcoin’s connection to Trump has become more evident as global markets react to his potential return to the White House.
However, the financial landscape is changing, with rising bond yields and a stronger dollar coinciding with Trump’s lead in prediction markets. Experts expect that Trump’s victory will lead to the emergence of a pro-growth economic agenda, and thus tighten monetary policy.
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Market analysts, such as Tony Sycamore of IG Australia Pty, confirm the current sell-off in stocks The strength of the US dollar and rising yields A sign of tightening financial conditions.
The analyst explains that this environment is generally unfavorable for the price of Bitcoin and more broadly Crypto marketwhich tend to thrive in more liquid market conditions.
Sycamore went on to say that although initial monetary conditions were already loose, the speed of tightening poses a major threat to the price of Bitcoin and other currencies. Risk assets With Trump becoming more likely to gain another term in the Oval Office.
Regulatory easing under Trump’s return?
The Trump campaign has openly embraced the cryptocurrency sector, Promising To make the United States the “crypto capital of the world.” His approach stands in stark contrast to Harris’s more cautious stance, which includes supporting a regulatory framework to promote industry growth while ensuring consumer protection.
A recent Bloomberg News/Morning Consult poll reveals that Trump and Harris are statistically tied among likely voters in key swing states, suggesting the upcoming election could hinge on targeted ads, marches and grassroots efforts — all of which could influence… Market sentiment.
In the cryptocurrency market, investors are increasingly betting on a possible victory for former President Donald Trump on Polymarket. present Opinion polls Trump’s lead showed 62% support compared to 38% for Vice President Kamala Harris as of Thursday, marking the largest margin since the race began.
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If Trump wins the upcoming elections, Bloomberg notes that experts expect a potential increase in returns, which could negatively impact risk assets, including Bitcoin price performance.
Caroline Morrone, co-founder of Orbit Markets, notes that while high returns may pose challenges, the outlook is… Organizational facilitation Under the Trump administration, it could play a pivotal role in shaping the cryptocurrency landscape.
Despite potential economic challenges that could negatively impact Bitcoin’s performance, Morrone concludes that regulatory transformation could support Bitcoin and other digital assets in regaining their footing.
At the time of writing, Bitcoin is trading at $67,670, up 2.4% over the past 24 hours.
Featured image of DALL-E, chart from TradingView.com