Qume Market Mondays - 17 August 2020

Welcome to another edition of Qume Market Mondays!

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Photo by Austin Distel on Unsplash

Bitcoin:
Bitcoin has been showing sideways movement this last week and at the time of writing it is trading at $11,800 levels. The daily aggregated open interest for bitcoin has been around $5bn, adding that to the strong price momentum, the market is generating bullish signals.

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Source-skew.com

The probability of bitcoin being above $12,000 for Aug-20 options is 50% and only a 27% chance of hitting the $13,000 mark.

This week, with current price resistance at $12,500 we expect bitcoin to retrace back to $12,000 in spot markets and then consolidate not much above that.

Ether:
Ether has been on a bullish ride this month. The price of ETH is up 70% from 30-days before, it is currently being traded at $423. Its daily aggregated open interest in futures markets crossed the $1.5bn mark last week.

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Source-Skew.com

ETH price as percentage of bitcoin hit this year’s all-time high of 3.7% this week.

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Source-Skew.com

Options markets have a bearish outlook on Ether, with the probability of its price falling back to $390 price level in August being 70%.

DeFi:
As the DeFi boom continues, the demand for bitcoin in DeFi has increased substantially, the amount of tokenized BTC generated daily now is more than the amount of daily bitcoin mined.

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Source-Skew.com

About 75% of it is WBTC (Wrapped BTC). Dollar value of WBTC is currently at $307 Mn.

Rising institutional demand of bitcoin:
On Thursday, open interest on the Chicago Mercantile Exchange (CME) was $800M. In terms of open contracts it is now the third-largest bitcoin futures exchange.

USA:

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USA markets have been surging consecutively with S&P 500 registering gains on three consecutive weeks.

Tesla:
Tesla Inc. has announced its 5–1 stock split. Its share prices are up 283.7%, currently trading at $1650. Apple and Tesla stock split could encourage other tech giants such as Amazon, Alphabet to do the same.

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