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.”
Read the full article here