23 May 2023

Pushed to extremes: A remarkably unremarkable market state

Trading volumes at 2.5 year lows and uniquely cheap vol
Ahead May 23

In Short

In this week's market update, we explore the implications of Tether's announced BTC purchases, a potential resurgence of BTC's portfolio diversification narrative, peculiarly priced options, and early signals of positive institutional flows in BTC.


  • Five consecutive Tuesdays of BTC at $27k
  • Lowest recorded 7-day average volume since December 2020
  • Correlation to Nasdaq at 17-month low
  • Tether to buy 6% of the daily BTC issuance?
Remarkably unremarkable
Bitcoin is still trading in the $27,000 area for the fifth consecutive Tuesday after yet another week of lackluster price action. The remarkably unremarkable state of the market is now aggressively reflected in most metrics. 7-day average trading volumes have reached a 2.5-year low, 30-day volatility sits at lows not seen since January 11, and trading activity has diminished in perps, leading open interest to flatten completely over the past week.
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