Markets
BTC price is stable, but the 10% monthly loss casts doubt on the Nasdaq rally
The cryptocurrency market regained some balance on Tuesday analysts said Oversupply concerns stemming from the Mt. Gox exchange’s defunct 140,000 BTC distribution are overblown. Bitcoin traded above $61,000, after hitting a low of $58,580 on Monday. The broader market indicator of the CoinDesk 20 Index (CD20) rebounded to 2,083 points from 2,020. However, BTC, a liquidity delegation for macroeconomic traders, it fell nearly 10% for the month, in stark contrast to a 5% gain in Wall Street’s tech-heavy index, the Nasdaq. The different trajectories could foreshadow a tightening of liquidity conditions in the financial markets and be a bearish signal for the Nasdaq. “If Bitcoin served as a liquidity indicator, then it would tell us that liquidity in the market is decreasing and that the Nasdaq 100 should eventually follow suit and fall as well,” Michael Kramer, founder of Mott Capital Management. he said in his daily analysis. “It might not be a good sign for Nvidia either, because Nvidia has also tracked Bitcoin quite well.”
Traders on the decentralized predictions platform Polymarket they have already chosen a winner in the 2024 US presidential election, and it’s not the incumbent 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%. Meanwhile, another contract showed Biden winning the popular vote, which simply represents the proportion of votes cast for each candidate and carries no electoral weight. Trump’s favorable stance on cryptocurrencies means that BTC and the market in general could emerge as a bet on Trump’s presidency ahead of the November 4 election.
Brokers, upcoming US-based spot ether ETFs may see less demand than their already active BTC competitors Bernstein said in a report on Monday, echoing recent comments from the investment banking giant JP Morgan. “ETH is not expected to see as much spot conversion as ETH due to the lack of an ETH staking feature in the ETF,” wrote analysts Gautam Chhugani and Mahika Sapra, adding that the underlying trade will likely find buyers over time and this should contribute to healthy liquidity in the ETF market. Spot ether ETFs are close to becoming one available to investors in the United States after the Securities and Exchange Commission (SEC) approved the issuers’ key regulatory filings last month. The excitement surrounding their debut leads investors to anticipate higher price swings for ether than for bitcoin. Some analysts believe so unfounded.