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Amidst the increase in votes in favor of the former President and the Republican candidate Donald Trump instead of Vice President Kamala Harris, the expectation is that the price of Bitcoin will increase again, but the rally seen in late September and the first weeks of October has faded, and experts. caused by the tightening of financial conditions that may affect the broader crypto market.
How Trump’s Campaign and Rising Fruits Are Affecting the Price of Bitcoin
According to the latest Bloomberg reportBitcoin’s association with Trump is becoming more prominent as global markets react to his return to the White House.
Still, the financial landscape is changing, with rising bond yields and a strengthening dollar consistent with Trump’s lead in forecast markets. Experts expect that Trump’s victory could usher in a pro-growth economic agenda, thereby tightening monetary policy.
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Market analysts, such as Tony Sycamore of IG Australia Pty, stress that the current sell-off in stocks and a strong US dollar and rising yields a signal that financial conditions are strengthening.
The analyst explains that this area is generally not good for the price of Bitcoin and more crypto marketwhich tend to thrive in more liquid market conditions.
Sycamore went on to say that although initial financial conditions were already relaxed, the pace of tightening poses a major threat to the price of Bitcoin and others. property at risk as the chances of Trump getting another term in the Oval Office increase.
Deregulation Under Trump’s Return?
The Trump campaign has openly embraced the cryptocurrency sector, promising positioning the US as the “crypto capital of the world.” His approach is very different from Harris’s observations, which include supporting a regulatory framework to encourage industry growth while ensuring consumer protection.
A recent Bloomberg News/Morning Consult poll shows that Trump and Harris are tied statistically among likely voters in key states, indicating that the upcoming election may depend on targeted advertising, rallies, and grassroots efforts—all of which can have an impact. market sentiment.
In the crypto market, investors are increasingly betting on the possible victory of former President Donald Trump in Polymarket. In the meantime votes show Trump leading with 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 is likely to win the next election, Bloomberg notes that experts are predicting a possible increase in yields, which could have a negative impact on risky assets, including Bitcoin’s price performance.
Caroline Mauron, founder of Orbit Markets, points out that although high yields may pose challenges, expectations regulatory reduction under the Trump administration could be significant in shaping the crypto landscape.
Despite the potential economic challenges that could have a negative impact on BTC’s performance, Mauron concludes that the regulatory change 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% in the last 24 hours.
Featured image from DALL-E, chart from TradingView.com
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