The cryptocurrency landscape regained a semblance of stability early Tuesday as analysts posited that concerns about a supply glut from the defunct exchange Mt. Gox’s impending distribution of 140,000 BTC were overstated. Bitcoin ascended beyond $61,000 after plummeting to a nadir of $58,580 on Monday. The comprehensive market barometer, the CoinDesk 20 Index (CD20), rebounded to 2,083 points from 2,020. Nonetheless, Bitcoin, a liquidity bellwether for macroeconomic traders, has slumped nearly 10% this month, starkly diverging from the 5% ascent in Wall Street’s tech-centric Nasdaq index. This disparity could portend a constriction of liquidity conditions in financial markets and herald a bearish outlook for Nasdaq. “If Bitcoin acts as a liquidity proxy, it suggests a contraction in market liquidity, indicating that the Nasdaq 100 might eventually follow suit and decline,” stated Michael Kramer, founder of Mott Capital Management, in his daily analysis. “This might also spell trouble for Nvidia, as Nvidia’s stock has mirrored Bitcoin’s performance closely.”

On the decentralized predictions platform Polymarket, traders have already predicted the outcome of the 2024 U.S. Presidential Elections, favoring Republican candidate Donald Trump over incumbent Joe Biden. A Polymarket contract querying the election winner showed Trump with a 57% chance of victory, compared to Biden’s 35%. Concurrently, another contract indicated Biden winning the popular vote, a metric that reflects the proportion of total votes but does not determine electoral success. Trump’s pro-crypto stance suggests that Bitcoin and the broader market could become speculative bets on Trump’s potential presidency leading up to the November 4 election.

The anticipated U.S.-based spot ether ETFs might experience subdued demand compared to their already operational Bitcoin counterparts, according to a report by broker Bernstein on Monday, echoing sentiments from investment banking titan JPMorgan. “ETH may not witness as much spot ETH conversion due to the absence of an ETH staking feature in the ETF,” analysts Gautam Chhugani and Mahika Sapra remarked, noting that basis trading could gain traction over time, thereby fostering robust liquidity in the ETF market. Spot ether ETFs are nearing availability to U.S. investors following the Securities and Exchange Commission (SEC)’s approval of crucial regulatory filings from issuers last month. The fervor surrounding their launch has led investors to anticipate greater price volatility in ether compared to bitcoin, though some analysts deem this optimism as unwarranted.