Qume Market Update
Bitcoin has continued sideways movements since our last edition. The asset is currently exchanging hands at $11,700 price levels.
Trading volumes were consistent this week. Aggregated open interest in bitcoin futures market, despite the BitMEX co-founder’s arrest and OKEx suspending withdrawals, have been consistent around $4B daily.
The mining profitability of bitcoin is at its all-time low level. The transaction activity on the bitcoin blockchain has also declined. This is generally bearish. If the trend continues, we won’t be seeing bitcoin above $12,000 price levels at the end of this week.
Institutional side of crypto markets have been doing well with aggregated options open interest rising throughout the month, now above $2B.
DeFi markets are booming and Uniswap is still dominating the market with its total value locked-in now close to $3B.
Demand of bitcoin in DeFi has continued to rise with the total value locked-in now at $1.2B.
OKEx troubles puts light on fundamental problem in the crypto markets
The withdrawal suspensions by Malta based crypto exchange OKEx had little effect on Bitcoin’s price. This again highlights some core problems related to crypto exchanges – The extreme level of centralization of the crypto industry by unregulated crypto exchanges within obscenely complex jurisdictions. For example, in case of OKEx, it is headquartered in Hong Kong but based in Malta. Which jurisdiction among the two can press charges on various matters such as KYC fraud or money laundering remains unanswered and to what extent the other jurisdiction can be involved is also not clear at this moment.
Following the events, the OKB price fell by 33% from 16th to 18th October.
US markets closed on losses today. This comes as the stimulus package faces heavy opposition in the House. Last week too, the US markets closed on weekly losses. It appears that currently, the stimulus package debates are driving the markets and it seems very unlikely that investors will get a stimulus package before elections are over.
We will be back again with more market insights next week.
Trade on the world’s fastest crypto derivatives exchange - Qume.io