The
crypto
market
regained
some
poise
early
Tuesday
as
analysts
said
supply
overhang
concerns
stemming
from
defunct
exchange
Mt.
Gox’s
planned
distribution
of
140,000
BTC
are
overdone.
Bitcoin
traded
above
$61,000,
having
hit
a
low
of
$58,580
on
Monday.
The
broader
market
gauge
of
the
CoinDesk
20
Index
(CD20)
bounced
to
2,083
points
from
2,020.
Still,
BTC,
a
liquidity
proxy
for
macro
traders,
is
down
almost
10%
for
the
month,
starkly
contrasting
with
a
5%
gain
in
Wall
Street’s
tech-heavy
index,
Nasdaq.
The
differing
trajectories
might
foreshadow
a
tightening
of
liquidity
conditions
in
financial
markets
and
be
a
bearish
signal
for
Nasdaq.
“If
Bitcoin
serves
as
a
liquidity
gauge,
then
it
would
tell
us
that
liquidity
in
the
market
is
falling
and
that
the
Nasdaq
100
should
eventually
follow
suit
and
move
lower
as
well,”
Mott
Capital
Management
founder
Michael
Kramer
said
in
his
daily
analysis.
“It
may
not
be
such
a
good
sign
for
Nvidia,
either,
because
Nvidia
has
tracked
Bitcoin
fairly
well,
too.”
Traders
on
the
decentralized
predictions
platform
Polymarket
have
already
chosen
a
winner
in
the
2024
U.S.
Presidential
Elections,
and
it’s
not
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
winning
versus
35%
for
Biden.
Meanwhile,
another
contract
showed
Biden
winning
the
popular
vote,
which
merely
represents
the
proportion
of
votes
cast
for
each
candidate
and
carries
no
electoral
weight.
Trump’s
favorable
stance
on
crypto
means
BTC
and
the
wider
market
could
emerge
as
a
bet
on
Trump’s
presidency
in
the
lead
up
to
the
Nov.
4
election.
The
impending
U.S.-based
spot
ether
ETFs
could
see
less
demand
than
their
already
live
BTC
peers,
broker
Bernstein
said
in
a
report
Monday,
echoing
recent
comments
by
investment
banking
giant
JPMorgan.
“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
the
basis
trade
will
likely
find
takers
over
time
and
this
should
contribute
to
healthy
liquidity
in
the
ETF
market.
Spot
ether
ETFs
are
close
to
becoming
available
to
investors
in
the
U.S.
after
the
Securities
and
Exchange
Commission
(SEC)
approved
key
regulatory
filings
from
issuers
last
month.
The
excitement
surrounding
their
debut
has
investors
anticipating
higher
ether
price
swings
than
bitcoin.
Some
analysts
believe
it
is
unfounded.