Welcome to another edition of Qume Market Mondays.
Failing to break the resistance at the $12,500 mark, bitcoin has plunged 12.1% to $10,200 levels on Sunday. Bitcoin is starting to lose momentum.
On the 2nd and 3rd of September, Bitcoin dumped $800 and $1,200 respectively on BitMEX. This took average hourly liquidations to $94M and $75M on the two days. Open interest of the XBTUSD pair of BitMEX has been falling significantly ever since.
While the crypto industry in CeFi is taking a hit, DeFi continues to boom. There are now 76.428k BTC in DeFi. Of last week that is a 33%+ gain. Bitcoin in DeFi has continued to grow even when bitcoin dumps significantly which implies that high demand of bitcoin in DeFi should not be taken as a bullish indicator for bitcoin.
Market volatility is up, and we expect bitcoin to show some sideways movement this week. It has consolidated around $10,200+ price levels on by the weekend. It may cross $10,500 in recovery by this weekend.
Bitcoin’s rising institutional demand:
The institutional interest in Bitcoin is rising consistently. Fidelity Investment launched its first bitcoin-only fund available to qualified investors. This comes from Fidelity Digital Assets, the cryptocurrency branch of Fidelity Investments.
A $700M crypto fraud:
Joseph Frank Abel pleaded guilty in a $722M crypto fraud plot amounting to a high-tech Ponzi scheme. He was working in the BitClub network which took money from investors in exchange for shares in the crypto mining pools. Members were rewarded for recruiting more members.
US Tech stocks pummel over the week:
As the US market turns volatile, NASDAQ, Dow Jones andS&P 500 swung from their highs to their weekly lows. Tech giant Apple fell as much as 8.3% on late Friday.
This recent downturn is maybe linked to investors assessing that these companies stocks are overvalued. have rallied remarkably amid the pandemic. The sell-offs could be because many investors think that tech stocks in the US markets are overvalued.
India vs China: A feud that isn’t ending soon:
India moved to ban 117 Chinese apps last week, including PUBGM in response to the provocation by the Chinese army on a conflicted territory.
India is being hit heavily by the Coronavirus pandemic, with daily new cases mounting up to around 80–90k.
In these hard times, India can’t possibly afford a battle on the economic front with China. India’s second quarter GDP numbers are down 23.4%. Even though some of the Industrial giants in India like TATA steel have claimed that their production is back at 100%, recovery from this pandemic could take years.