“Volatility has been, I think, at its lowest point for Bitcoin in a long time.” – 04:46
Ambre Soubrian, CEO of Kaiko, joins Remy Blaire to discuss the current dynamics of the cryptocurrency market, particularly in light of recent economic data.
Ambre provides insights into the fragmented nature of crypto data, explaining that the multitude of cryptocurrency exchanges and decentralized financial protocols (DEXs) complicates access to comprehensive market information. He highlights how this fragmentation can lead to price discrepancies across different exchanges, driven by varying supply and demand dynamics.
The conversation shifts to the recent influx of capital into the crypto space, particularly through digital asset treasuries (DATs) and exchange-traded products (ETPs). Ambre notes that the demand generated by these financial instruments is significantly outpacing the net new supply of Bitcoin, creating upward pressure on prices. He emphasizes that this trend is not limited to the U.S., as DATs are also gaining traction in Europe and Asia, indicating a broader institutional adoption of cryptocurrencies.
As they delve deeper into the risks associated with the crypto market, Ambre points out that while volatility has decreased, liquidity risk remains a critical concern. He stresses the importance of understanding how quickly large positions can be liquidated, especially as institutional players accumulate significant asset holdings. Additionally, he addresses security risks related to custody solutions for these assets.