BTC Steadies, But 10% Monthly Loss Questions Nasdaq Rally

By Kapil Rajyaguru

The crypto market regained some poise early Wednesday as analysts said supply overhang concerns stemming from defunct exchange Mt. Gox’s planned distribution of 140,000 BTC are overdone. Bitcoin traded above $62,000, having hit a low of $58,580 on Monday.

Ether was changing hands around $3411, up by almost 2% in the last twenty-four hours.

The majority of altcoins are currently trading in the green, charting mild gains compared to yesterday’s prices.

On the meme coin front, things are looking good. The category, as a whole, is up 3.5%, while some of the larger memes chart impressive increases. PEPE is up almost 10%, WIF – 15.7%, FLOKI – 10.1%, and so forth.

All in all, it’s interesting to see if the worst is behind us or if the market has more downside prepared in the coming days.

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.

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.

Meanwhile, the impending U.S.-based spot ether ETFs could see less demand than their already live BTC peers, broker Bernstein said in a report, echoing recent comments by investment banking giant JPMorgan.

According to the popular Fear & Greed index, which gauges emotions and sentiments from various sources, the market is in a state of fear. This might mean that there’s a temporary bottom in place but it might also mean that uncertainty is the predominant force right now.

The global crypto market cap is $2.29T, a 2.53% increase over the last day. The total crypto market volume over the last 24 hours is $68.19B, which makes a 29.32% decrease. The total volume in DeFi is currently $4.39B, 6.43% of the total crypto market 24-hour volume. The volume of all stable coins is now $63.53B, which is 93.16% of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 53.42%, an increase of 0.13% over the day.

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