Efficient Frontier
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Efficient Frontier

Double Bubble

The 4 biggest themes of the last weeks in the fast paced cryptocurrency world which is quickly converging with reality (and a quick defi and Bitcoin markets overview too)

So here’s a list of themes we made to wrap our head around:

1)Regulators concerned by the borderless freedom of crypto

According to Investor Erik Townsend, Bitcoin poses a serious threat to the government’s monopoly on issuing money. But he believes that since enough institutional investors are now invested in Bitcoin, at this point it’s “politically inexpedient” to ban it.

2) Regulators welcome cryptocurrency into supervised banks

Last monday the US federal banking regulator published an interpretive letter saying that these financial institutions can participate as nodes on a blockchain and store or validate payments, meaning blockchains are awarded the status of a “payment network”. The letter followed the OCC decision to allow banks to transact and custody stablecoins.

3) Wall Street & big business let Bitcoin into their hearts and pockets

“Bitcoin is a journey, not a destination, and everyone is on their own path. Every morning when I study Bitcoin, I find myself deeper in awe, humbled by the power, and potential, of its unstructured simplicity. The more I learn about Bitcoin, the more I realize how much there is to know, and how much I want to know. There’s beauty in Bitcoin. If you study Bitcoin intensely, with humility, and… [be] mindful of Wallace’s deep wisdom that sometimes ‘the most obvious, most important realities are the ones that are hardest to see’” wrote Stone Ridge investment’s CEO in a recent letter to their clients. Praise Satoshi.

4) Bitcoin’s cycles VS the money printer

After rising from a low of ~$4,000 in 2020 to manic heights of close to $42,000, people are wondering if this Bitcoin cycle is over. After all Bitcoin did have an unbelievable run-up after the halving. Others are calling for a 2013 type ‘double bubble’, where Bitcoin experienced two distinct periods of strong price growth due to growing understanding and adoption, as it is experiencing today. But a unique difference in 2021 is increasingly realistic inflation fears fed by Central Banks money creation and monetary policy, which draws investors to Bitcoin for secular reasons, no matter where it is in its halving and hype cycle.

Right: Bitcoin/USD 4 hour price candles, January 2021. Left: Bitcoin/USD monthly price candles. Source:TradingView/Bitstamp

Bitcoin timewarp

10 days ago on Saturday, Bitcoin’s price reached a new record — $42,000. Bitcoin’s price spent the next two days slipping until last Monday it crashed by more than $8,000 (25%), reaching close to $30,000. Panicked sellers created a new record spot volume on Coinbase and Binance. That was despite the fact that $30,000 per coin was hit for the first time only 17 days ago.


Source: Bloomberg

News& links

  • Popular EU Trading app eToro, temporarily limits customer buying of Bitcoin due to shortage
  • Canaan miners release immersed liquid cooling solution
  • End of an era: UK orders unregulated cryptocurrency businesses to shut down, crypto derivatives ban goes into effect
  • Indian cryptocurrency exchange raises $15 million.Fidelity increases investment in Hong-Kong Bitcoin broker OSL
  • Finnish Customs to sell $75 million worth of Bitcoin from 2016 crackdown, while German authorities seize servers of another major dark-market.
  • European officials crawl closer to CBDC; Goldman Sachs announce cryptocurrency custody
  • Russian lawmakers pass crypto bill
  • Fiat fun: Have UK citizens hoarded $67 Billion in cash? Unexplained $1.3 Billion uncovered in Vatican bank transfers to Australia



With over 12 years of high frequency and algorithmic trading experience, our technology powers weekly over $1 Billion of trade. We’re passionate about digital assets and our mission is to bring professional, trusted technology that adds value to the industry and the markets.

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