Amid the surge in polls in favor of former President and Republican candidate Donald Trump over Vice President Kamala Harris, expectations for a further recovery of the Bitcoin price soared, but the rally seen in late September and the first weeks of October has faded, with experts attributing it to tightening financial conditions that could affect the broader crypto market.
How Trump’s Campaign And Rising Yields Impact Bitcoin Price
According to a recent Bloomberg report, Bitcoin’s association with Trump is becoming more pronounced as global markets react to his potential return to the White House.
Nonetheless, the financial landscape is shifting, with rising bond yields and a strengthening dollar coinciding with Trump’s lead in prediction markets. Experts anticipate that a Trump victory could usher in a pro-growth economic agenda, thereby tightening monetary policy.
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Market analysts, such as Tony Sycamore from IG Australia Pty, emphasize that the current selloff in stocks and a stronger US dollar and rising yields signal tightening financial conditions.
The analyst explains that this environment is generally unfavorable for the Bitcoin price and the broader crypto market, which tends to thrive in more liquid market conditions.
Sycamore went on to say that while the initial monetary conditions were already loose, the speed of the tightening poses a significant threat to the Bitcoin price and other risk assets as the likelihood of Trump securing another term in the Oval Office increases.
Regulatory Easing Under Trump’s Return?
Trump’s campaign has openly embraced the cryptocurrency sector, promising to position the US as the “crypto capital of the world.” His approach starkly contrasts Harris’s more cautious stance, which involves supporting a regulatory framework to foster industry growth while ensuring consumer protection.
The recent Bloomberg News/Morning Consult poll reveals that Trump and Harris are statistically tied among likely voters in key swing states, indicating that the upcoming election could hinge on targeted advertising, rallies, and grassroots efforts—all of which could influence market sentiment.
In the crypto market, investors are increasingly betting on a potential victory for former President Donald Trump on Polymarket. Current polls show Trump leading with 62% support compared to 38% for…
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