Welcome to another edition of Qume Market Mondays
Bitcoin crossed the $18K price mark late last week. Currently, it is changing hands at $18,640.
In this bull run, the ratio of bitcoin top 100 to the total has declined, indicating a greater dispersion among bitcoin wallets. The ratio has not been this low in many years. With this dispersion, we expect some stability to this bull run.
This bull run is not only a treat for bitcoin bull traders but miners as well who have had a challenging time making money in the $8,000 - $11,000 price range. Bitcoin miners have now increased their mining profitability significantly in the $15,000+ range.
Exchanges are running tight order books, having close spreads (15bps on an average) with no opportunities for arbitrage. We expect Bitcoin to hit the $19K mark by this weekend.
The interest of professional investors in bitcoin has spiked as well with Bitcoin options markets registering $500M+ in daily trading volumes and about $4B+ in aggregated open interest.
DeFi is being pushed to new heights with ETH crossing the $500 mark, more and more ETH and Bitcoin are being locked-in on DeFi platforms. The DeFi industry is now valued at $14.15B.
Maker is back to being the most valued DeFi project with $2.71B worth of assets locked-in on its platform. As BTC price has skyrocketed since our last market update, WBTC is now the second most valued DeFi project with $2.31B worth of bitcoin locked in.
Global stocks hit a record high late Monday but have eased off the highs in a choppy week of trading.
US markets closed on weekly losses, with major indices such as S&P 500 and Dow Jones drifting downwards on Friday. The markets have been performing poorly under the new surge of coronavirus cases across the country. This week, the markets also suffered a hit due to the ongoing Fed dispute with the treasury over the emergency lending programs.
The surge in COVID cases is not limited to the US. Hong Kong just entered its fourth wave of COVID. The pandemic will continue to be one of the most principal factors in determining the general direction of markets worldwide.
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