U.S. banks tightened lending standards for nonbank financial firms, with net tightening of 22 percentage points: 12 of 50 banks raised their standards, one loosened them and 37 left them unchanged. They also reported stronger financing demand from business credit intermediaries and private-equity funds. The ICE BofA U.S. High Yield Index option-adjusted spread widened by 30 basis points between October 28 and October 30, signaling financing pressure, while the Chicago Fed National Financial Conditions Index still indicated looser-than-average conditions. These indicators do not establish Bitcoin selling, but continued widening in credit premiums combined with weakening Bitcoin demand could reduce investors’ capacity and willingness to hold risky assets.
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