This week, the cryptocurrency market has been correcting downwards after several weeks of growth: BTC is trading around 67300.00 (–2.1%), ETH is at 2480.00 (–8.4%), USDT is at 0.9993 (–0.02%), BNB is around 588.00 (–2.9%), and SOL is at 171.50 ( 5.5%). The total market capitalization by the end of the week amounted to 2.30T dollars, and the share of BTC increased by 57.9%.

The negative dynamics seem short-term before a new increase since fundamental factors remain positive for the sector. The main one is the high probability of Republican candidate Donald Trump winning the US presidential election in November, which, according to the Polymarket platform, is 64.8%, the highest since July. Earlier, the official stated that he was ready to make the country the cryptocurrency capital of the world, approve Bitcoin as one of the reserve assets, and replace the head of the US Securities and Exchange Commission (SEC), Gary Gensler.

Meanwhile, in an interview with CNBC, Ripple founder Brad Garlinghouse noted that after the elections, the authorities’ attitude to cryptocurrencies may change depending on which candidate wins. A change in the SEC leadership will help settle the agency’s lawsuits against digital companies and end the time of terror. Experts consider these comments overly optimistic since Gensler recently said in an interview with Bloomberg Business that his department would maintain a tough approach to digital assets and not develop separate legislative regulations. Also, the head of the Federal Reserve Bank of Minneapolis, Neel Kashkari, added that digital tokens were mainly used for illegal activities and fraud and were practically not a means of payment.

Analysts believe that Trump’s economic plans may have an ambiguous impact on the sector. On the one hand, a significant tax cut should free up significant funds for American businesses to invest. However, the expected increase in import duties as part of the Republican candidate’s new trade policy may lead to an acceleration of inflation, as a result of which US Fed officials will abandon the easing of monetary policy, putting pressure on assets alternative to the dollar. Now, traders are positively perceiving the regulator’s actions, which began to reduce the cost of borrowing in September. Also, they expect two more adjustments to the indicator before the end of the year.

 Despite the downward correction, experts assess the situation in the industry as positive, as evidenced by the continuing inflow of funds into Bitcoin-ETF, which amounted to 595.6M dollars in the first four trading sessions of the current week.

Next week, most of the largest digital assets may begin to consolidate or resume growth.