Analysis: Trump deal thwarts cryptocurrency, bitcoin rally cools

US bond yields and the dollar have rallied sharply recently as Mr. Trump leads Mr. Harris in the forecast markets. Investors are holding back bets on easy monetary policy as Mr. Trump will impose pro-growth measures on an already stronger US economy if he wins the election. Bitcoin saw its first weekly decline in three weeks as financial conditions tightened relatively. IG Australia market analysts said the stock market sell-off, a higher dollar and rising yields all meant tighter financial conditions. That's not good for cryptocurrencies.
Some will point out that financial conditions were accommodative from the start, but more important is the pace of tightening. The co-founder of Orbit Markets, a liquidity provider for derivatives trading in digital assets, said a Trump victory could lead to higher Treasury yields and ultimately negatively impact risk assets. However, the expected softening of crypto regulation by the Trump administration should remain a more important factor. (Golden Ten)