Bitcoin Holds Firm Despite 10% Monthly Drop, Posing Questions for Nasdaq’s Surge

Bitcoin Holds Ground as 10% Monthly Decline Casts Shadow on Nasdaq’s Rise

Bitcoin Holds– The cryptocurrency market showed signs of recovery early Tuesday, with analysts suggesting that concerns over an excess supply due to the planned distribution of 140,000 BTC from the defunct exchange Mt. Gox are exaggerated. Bitcoin traded above $61,000, rebounding from a low of $58,580 observed on Monday. The CoinDesk 20 Index (CD20), a broader market indicator, also rose to 2,083 points from 2,020.

Despite these gains, Bitcoin remains down nearly 10% for the month, contrasting sharply with a 5% increase in the tech-heavy Nasdaq index on Wall Street. This divergence may indicate tightening liquidity conditions in financial markets, possibly signaling a bearish outlook for the Nasdaq.

Michael Kramer, founder of Mott Capital Management, commented in his daily analysis, ‘If Bitcoin is a measure of liquidity, then it suggests that market liquidity is diminishing, which could eventually lead to lower levels for the Nasdaq 100.’ He also noted, This may not bode well for Nvidia either, as Nvidia has historically followed Bitcoin’s performance closely.

Traders on the decentralized predictions platform Polymarket have already made their call on the outcome of the 2024 U.S. Presidential Elections, and incumbent Joe Biden isn’t favored to win. According to a Polymarket contract, Republican candidate Donald Trump is seen as the clear favorite, with a 57% chance of winning compared to Biden’s 35%. Another contract indicates that Biden may win the popular vote, which reflects the percentage of votes each candidate receives but doesn’t determine the election outcome.

Trump’s favorable stance on cryptocurrencies suggests that Bitcoin (BTC) and the broader market could become a focus leading up to the November 4 election.

trending crypto chart today

• The notional open interest in bitcoin futures listed across centralized exchanges has declined by 14% to $37 billion since June 7.
• The decline represents the unwinding of carry/basis trades due to negative funding rates, according to analysts at Bitfinex.
• Source: Coinglass

– Omkar Godbole

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