Bitcoin investors could pay the price as the Federal Reserve tightens bank lending rules

Banks tightened loan approval standards for nonbank financial firms while reporting stronger demand from business lenders and private-equity funds, according to the Federal Reserve's Nov. 2 lending survey.That combination points to a financing constraint that could limit investors' appetite for Bitcoin beyond changes in the Fed's policy rate.For business lenders, classified as business credit intermediaries in the survey, 12 of 50 responding domestic banks tightened standards, one eased, and 37 left them unchanged. The response table shows 24% tightening versus 2% easing, for a net tightening of 22%.The October Senior Loan Officer Opinion Survey covers the preceding three months, generally the third quarter. Responses were due Oct. 5, well before the late-October spread widening.Domestic banks reported net tightening across all five nonbank borrower categories surveyed. They most often cited a less favorable or more uncertain economic outlook and deterioration in borrowers' financial strength.At the same time, banks reported stronger demand from business credit intermediaries and private-equity funds in a question measuring funds actually disbursed.Among banks reporting stronger no...