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Episode #132: Crypto's Liquidity Surge with David Lawant

FalconX's Head of Research joins to discuss the explosion of liquidity coming into crypto markets heading into 2025

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Olá pessoal!

David Lawant is Head of Research at FalconX, an institutional prime brokerage in the US. He joins for a great discussion about crypto market liquidity and institutional adoption trends.

With previous roles at Bitwise Asset Management and Hashdex, and equity research experience at Itau and JPMorgan prior to that David brings a unique perspective bridging both US and Brazilian crypto markets.

As one of the largest crypto prime brokers, FalconX serves as a crucial infrastructure provider for institutional players entering the space - from crypto-native hedge funds to traditional banks and ETF issuers. David's role involves analyzing market trends and helping institutional clients navigate the evolving crypto landscape.

Key Market Insights:

  • Bitcoin spot trading volumes exploded from $10-12 billion daily pre-election to over $25 billion by mid-December, with several days exceeding $40 billion. This represents a 2-4x increase in market depth

  • Despite the price surge from $60-70K to $90-100K, order books have remained surprisingly tight, creating heightened price sensitivity to news and market sentiment.

  • Current market conditions mirror the October 2020 anticipation phase, suggesting we could be at the start of another significant market cycle

  • Bitcoin options open interest has reached $30 billion, matching what futures markets achieved just months ago

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David and I also spend some time comparing institutional adoption across the US and Brazilian markets.

  • While US markets show broader institutional adoption across different types of funds, Brazilian banks are actually ahead in providing direct crypto access to clients

  • Brazil's Central Bank's progressive stance has enabled major financial institutions to offer integrated crypto services - something still rare in the US market

  • Traditional financial advisors remain an untapped market in both countries, though ETF launches are helping bridge this gap

Looking ahead to 2025, David is particularly excited about several trends, including the potential for crypto index ETFs, the continued maturation of the derivatives market, and the emerging Bitcoin Layer 2 ecosystem.

David brings incredible insights into institutional crypto trends, liquidity and market structure, and how major financial players are approaching this space. I really enjoyed this conversation and I hope you do as well.

You can connect with David on Linkedin.

Have a great weekend everyone!

-AWS

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