Markets
BTC Price Stabilizes, But 10% Monthly Loss Questions Nasdaq Rally
The crypto market regained some balance on Tuesday morning, as analysts said Oversupply concerns arising from the defunct exchange Mt. Gox’s planned distribution of 140,000 BTC are exaggerated. Bitcoin traded above $61,000, having hit a low of $58,580 on Monday. The broader market indicator CoinDesk Index 20 (CD20) jumped to 2,083 points from 2020. Still, BTC, a liquidity proxy for macro traders, it fell nearly 10% for the month, contrasting sharply with a 5% gain in Wall Street’s tech index Nasdaq. The different trajectories could portend a tightening of liquidity conditions in financial markets and be a bearish sign for the Nasdaq. “If Bitcoin serves as a liquidity gauge, then that would tell us that liquidity in the market is falling and that the Nasdaq 100 should eventually follow suit and fall as well,” said Mott Capital Management founder Michael Kramer. said in his daily analysis. “It might not be such a good sign for Nvidia, either, because Nvidia has also tracked Bitcoin very well.”
Traders on the decentralized prediction platform Polymarket I have already chosen a winner in the 2024 US presidential election, and it is not the current Joe Biden. A Polymarket contract asking who would win the election showed Republican candidate Donald Trump as the clear favorite, with a 57% chance of victory to Biden’s 35%. However, another contract showed Biden’s victory in the popular vote, which only represents the proportion of votes cast for each candidate and has no electoral weight. Trump’s favorable stance on cryptocurrencies means that BTC and the market in general could emerge as a bet on a Trump presidency ahead of the November 4 elections.
Imminent US-Based Spot Ether ETFs May See Less Demand Than Their Already-Active BTC Peers, Broker Bernstein said in a report on Monday, echoing recent comments from the investment banking giant JP Morgan. “ETH should not see as much spot ETH conversion due to the lack of an ETH staking feature in the ETF,” analysts Gautam Chhugani and Mahika Sapra wrote, adding that basic trading will likely find takers over time and this should contribute for healthy liquidity in the ETF market. Spot Ether ETFs are close to becoming available to investors in the US after the Securities and Exchange Commission (SEC) approved key issuer regulatory filings last month. The excitement surrounding its debut has investors anticipating higher price swings for Ether than for Bitcoin. Some analysts believe it is unfounded.