The Weekly Update - Week 20

A short summary.

Highlights from this week’s report

This is just a short summary of the market report that we sent out to all paying subscribers today. If you want to read to full report, subscribe now.

Market Update

  • Bitcoin’s halving is finished, in a week with volatile price action in the market. Bitcoin looks to finally decouple from the stock market and we just saw the highest trading volume in 2020 this week, as the momentum still looks strong for the leading cryptocurrency.

  • The futures market for bitcoin has gone through a healthy change in open interest after the market crashed in March. This signaling fewer leveraged positions, meaning that the market is less vulnerable for violent liquidation loops like those seen in March

  • We’re seeing clear signs of professional investors entering the bitcoin market, with massive growth on CME lately.

Valuation

  • The bitcoin price has bounced between $8,000-$10,000 this week, but two support zones saved the uptrend as bitcoin is likely to test the yearly highs again.

  • Higher activity on CME lately has shown that professionals traders are more bullish than retail at the moment, with premiums rates far above other platforms.

Blockchain Activity

  • Some miners are moving back to the bitcoin forks after the halving events have passed. Yet, relative hash rate shares are lower than prior to all halvings.

  • The Network Value to Transaction ratio could indicate that the bitcoin price is about to enter a period of fast and strong growth.

  • We’ve seen a huge spike in bitcoin locked in DeFi this week, which most likely is related to Maker accepting WBTC as collateral now, leading to creative solutions from market participants.