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Newsletter #52: Coming full circle
Welcome back to Efficient Frontier’s biweekly newsletter!
For the last few weeks fear has reigned supreme in the crypto markets along with unusually low volatility, a rare combination.
Since our last newsletter, Bitcoin has been ranging between $43,000 and $37,400, slowly trending lower as the weeks progressed, continuing its 6-month down trend.
BTC’s 30-day volatility is 2.24% at the time of writing. The previous low was in November 2020, when Bitcoin consolidated under $20,000 for several weeks.
Bitcoin’s daily trading volume reached a 16-month low of $4.22 billion on April 22nd.
Liquidations and perpetual funding rates are low. Funding is alternating between slightly negative to slightly positive since April 12th. This is also the case for short/long ratio, showing traders are trying to decide the market’s direction.
So what’s next? We‘re staying tuned.
To end on a positive note, the number of deals in Q1 of 2022 broke records. Q1 saw 514 deals with the average deal netting $32.3 million to founders with a record inflow of $14.66 billion into crypto companies, according to CoinTelegraph.
36 crypto companies raised more than $100 million in Q1 of 2022, according to Arcane.
Investments flowing in the mining industry are reflected in the rise in Bitcoin’s hash rate, which on Monday hit a new record of 270 ET/s!
News & links
1. Chinese tech giant TenCent hiring for several blockchain and Web 3.0 positions
2. Panama legalizes cryptocurrency and set a 0% tax
3. Central African Republic makes Bitcoin legal tender
4. First city to mine Bitcoin: Fort Worth, Texas
5. Fidelity allows US savers to put Bitcoin in retirement accounts
We’re excited to share some photos of our new and permanent HQ!
Thank you for reading, this is our last markets newsletter in this format. Stay tuned for our content reboot!