Markets
BTC Price Stabilizes, But 10% Monthly Loss Challenges Nasdaq Rally
The crypto market regained some composure on Tuesday morning as analysts said supply glut issues stemming from the defunct exchange Mt. Gox’s planned distribution of 140,000 BTC is overblown. Bitcoin traded above $61,000, after hitting a low of $58,580 on Monday. The broader CoinDesk 20 Index (CD20) market index rebounded to 2,083 points from 2,020. Still, BTC, a liquidity proxy for macro traders, it is down almost 10% for the month, contrasting sharply with the 5% rise in Wall Street’s technology index, the Nasdaq. These different trajectories could suggest a tightening of liquidity conditions on the financial markets and constitute a bearish signal for the Nasdaq. “If Bitcoin serves as a liquidity indicator, that would tell us that market liquidity is declining and that the Nasdaq 100 should eventually follow suit and decline as well,” said Michael Kramer, founder of Mott Capital Management. said in his daily analysis. “This may not be such a good sign for Nvidia either, as Nvidia has also tracked Bitcoin quite well.”
Traders on the decentralized prediction platform Polymarket I have already chosen a winner of the 2024 US presidential elections, and it’s not incumbent President 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 winning to Biden’s 35%. Meanwhile, another contract showed Biden winning the popular vote, which simply represents the proportion of votes cast for each candidate and has no electoral weight. Trump’s favorable stance on crypto means that BTC and the market as a whole could emerge as a bet on Trump’s presidency as the November 4 election approaches.
Upcoming US-based spot ether ETFs may see lower demand than already-operating BTC peers, broker Bernstein said in a report Monday, echoing recent comments from the investment banking giant J.P. Morgan. “ETH is not expected to see as many conversions from ETH to spot due to the lack of an ETH staking feature in the ETF,” wrote analysts Gautam Chhugani and Mahika Sapra, adding that the exchange base will likely find takers over time and that this should contribute to healthy liquidity. in the ETF market. Spot Ether ETFs are about to become available to investors in the United States after the Securities and Exchange Commission (SEC) approved key regulatory filings for issuers last month. Excitement over their debut has investors anticipating ether price swings higher than those of bitcoin. Some analysts think this is the case unfounded.