Bitcoin price dynamics: Trump's political agenda's impact on crypto markets
Expectations for a Bitcoin price recovery rose as polls favored former President and Republican candidate Donald Trump over Vice President Kamala Harris, 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 crypto market.
Trump's Campaign and Rising Yields Affect Bitcoin Price
Bitcoin's relationship with Trump is growing as global markets respond to his likely return to the White House, according to Bloomberg.
Rising bond rates, a stronger currency, and Trump's prediction market lead are changing the financial environment. A Trump win might tighten monetary policy by promoting economic development, according to experts.
Return of Trump: Regulatory Easing?
The Trump campaign has pledged to make the US the “crypto capital of the world.” His attitude contrasts with Harris's cautious support for a regulatory framework to promote sector development and consumer safety.
Trump and Harris are statistically deadlocked among likely voters in crucial swing states, according to a Bloomberg News/Morning Consult survey, suggesting that focused advertising, rallies, and grassroots initiatives might impact market sentiment and decide the election.
Crypto investors are banking on former President Donald Trump winning Polymarket. Trump leads Vice President Kamala Harris by 62% to 38% in Thursday surveys, the greatest margin since the election started.
Bloomberg reports that analysts expect a yield hike if Trump wins, which may hurt risk assets like Bitcoin.
Caroline Mauron, co-founder of Orbit Markets, notes that although greater returns may be difficult, regulatory loosening under a Trump administration might shape the crypto landscape.
Despite economic issues that might hurt BTC, Mauron believes the regulatory reform could help Bitcoin and other digital assets recover.
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