Bitcoin rally cools as Trump deal puts a damper on cryptocurrencies

Bitget News, Oct. 24 - U.S. bond yields and the U.S. dollar have risen sharply recently as Trump leads Harris in prediction markets. Investors are curbing bets on loose monetary policy as Trump implements pro-growth measures on the already relatively strong U.S. economy if he wins the election. Bitcoin saw its first weekly decline in three weeks as the financial environment tightened in relative terms.Market analysts at IG Australia said the stock market sell-off, a higher dollar and rising yields all signaled a tighter financial environment. This is not good for cryptocurrencies. Some will point out that the financial environment has been loose from the start, but what is more important is the speed of the tightening. The co-founder of Orbit Markets, a provider of liquidity for trading digital asset derivatives, said that a Trump victory could lead to higher U.S. bond yields and ultimately negatively impact risky assets. However, the expected softening of regulation of the crypto industry by the Trump administration should remain the more important factor.