Qume Market Mondays-7th December 2020

Welcome to another edition of Qume Market Mondays.

Bitcoin

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Source-skew.com

Bitcoin crossed it record price set in December, 2017 and reached $19,914 earlier this week. After the record spike the asset is currently down -3.7%, trading at $19,158.

There is high resistance at $20k mark as traders may have been betting on a price dump similar to the once seen after the Dec 2017 rally.

The price difference in futures and spot markets was about $35 may imply relatively low overleveraged positions in the futures markets.

Image for post
Source-skew.com
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The weekend registered relatively low trading volumes in spot and futures markets as the crypto markets stabilize.

Ether

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Source-skew.com

Ether options trading volume fell with the Bitcoin as well early this weekend and implied volatility of bitcoin is dropping. The Ether options markets seems losing investor’s interest the reason could be the high uncertainty over bitcoin and Ether’s price for the coming months as the bitcoin keeps failing to touch the $20k mark.
While the traders are bullish, institutional investors are looking to buy crypto accepts after the dip. Interestingly, FOMO among big investors may just help bitcoin touch the $20,000 mark.

Institutional Crypto Markets

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Source-Coindesk

Leverage funds are also being vary of the bitcoin’s bull run and they have been adding short positions to hedge on the CME. The hedge against the possible huge price dump, that many speculate will happen as seen after previous bitcoin bull runs.

Global Markets

AS the global markets head into fifth straight weekly gains, traders globally are looking more carefully into the longevity of this ongoing recovery. The rally witnessed globally could be credited to the three major factors:

1. The huge stimulus packages released by governments worldwide

2. The progress on the covid-19 vaccines inducing bullish expectations

3. Record inflows into emerging markets in the month November this year.

India

The income tax authority of India is said to have been tracking investors enjoying returns in crypto markets. The ongoing price rally is surely to have been generating he returns for many in the country and it Income Tax department is ready to demand taxes on those return.
Experts suggest registering the returns as capital gains.

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