#1010 Here Is Proof That Bitcoin Is Very Cheap - BTC On-Chain Analytics

In today's episode, I break down Bitcoin On-Chain Analytics. I'm usually joined by WiIl Clemente on Saturdays to discuss his research through articulating his weekly newsletter. Unfortunately, Will was unable to join us this week. Instead, I go through the Blockware Newsletter to help you understand why Bitcoin crashed this week and what you should do during a crash. To see the video with the corresponding charts referenced throughout the interview, go to my Anthony Pompliano YouTube Channel ======================= Today’s episode is sponsored by Abra. Based in California and backed by top VC firms, Abra is an all-in-one simple, secure app that allows you to trade over 110 cryptocurrencies, get 0% interest loans using your crypto as collateral and earn interest with up to 14% APY on stablecoins and 8.15% APY on Bitcoin. Join nearly 2 million users by downloading Abra from the Google Play or Apple App store. If you download the app today, you will get $15 in free crypto once you fund your account. You came, you invested — now conquer. ======================= The number one name in NFT domains and the world’s most powerful wallet are teaming up to bring something new to the crypto and Web3 world: That’s right, Unstoppable Domains and Blockchain.com partnered to create NFT domain names ending in . Blockchain. It’s the perfect ending to show that you’re a believer in a decentralized future. The Blockchain.com community can get one, for free by signing up for the waitlist here. Free NFT domains provide all the benefits of premium Unstoppable Domains, including fee-free, lifelong ownership. Don’t have a Blockchain.com wallet? No worries, these new domains are available to everyone for as low as $5. Either sign up for a free blockchain.wallet or visit Unstoppabledomains.com to buy your domain today. ======================= Crypto is all about giving the power back to the people and our sponsor, Pipe, is doing that in a big way. Pipe is the world’s first trading platform that allows you to trade recurring revenue streams for up-front capital. And with Pipe’s new API, companies with recurring revenue can build seamless, embedded financing options into their platforms. One of the most interesting uses for Pipe’s new API right now is Compass Mining’s “Mine Now, Pay Later” which powers payment plans on bitcoin mining hardware so more miners can start or scale with a smaller up-front investment. Whether you’re looking for mining hardware or scaling any business with recurring revenue, check out Pipe to access growth capital with: No loans. No dilution. No restrictive covenants or warrants. Just growth on your terms And right now, Pomp Podcast listeners can access tens of thousands of dollars even millions fee-free for 12 months. Whether you are a bitcoin mining company looking to enable financing for your customers or a SaaS, DTC, or any business that has recurring revenue, sign up at http://pipe.com/pomp to start trading today. =======================

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:02Anthony Pompliano?

  What's up everyone, this is Anthony Pompliano. Most of you know me as Pomp. You're listening to the Pomp Podcast, simply the best podcast out there. Now let's kick this thing off. In today's episode, Will Clemente couldn't join me for our weekly sit-down, so instead, I just break down all of the charts that he put together. I hope that you enjoy this, and please bear with me, as obviously, I'm nowhere near as astute in these metrics as Will, but I'm doing my best to keep up. So, before we get into this episode, though, I want to quickly talk about our sponsors. This episode is brought to you by BCB Group. With a dedicated focus on institutional payment services, BCB Group provides business banking, cryptocurrency, and foreign exchange market liquidity for many of the world's largest crypto-engaged financial institutions. BCB Business Accounts allow businesses to load fiat currency and cryptocurrencies for

• 0:47Anthony Pompliano?

  payments, operations, and trading purposes. BCB's clients can trade FX and cryptocurrencies quickly and at scale with market-leading value. BCB's Blink Network is the European crypto industry's first instance settlements network, and one of the first real-time payment networks of its kind to allow free, real-time transactions across fiat and digital currencies. BCB's vision is to empower the global financial revolution through sustainable and innovative banking. You can find out more by visiting bcgroup.com/pomp today. Again, if you want to learn more, go to bcgroup.com/pomp today. This episode is brought to you by Unstoppable Domains. They recently launched an awesome feature to level up your unstoppable domains profile. It's called badges. They translate

• 1:29Anthony Pompliano?

  wallet activity into achievements, so celebrating, reliving, and sharing your crypto story has never been easier. Before, these stories were buried in transaction logs that were hard to read, making them difficult to find and understand as well. But since unstoppable domain badges are awarded based on your wallet activity, they're a super fun, easy way to build on-chain reputation just by doing what you do, like supporting NFT projects, collecting domains, or holding crypto. Unstoppable domain owners can activate badges from their account profile page right now. If you haven't minted an NFT domain yet, go to unstoppabledomains.com right now to own your name, starting as low as $5. Again, head over to unstoppabledomains.com right now to get started.

• 2:10Anthony Pompliano?

  Is brought to you by Pipe. Crypto is all about giving the power back to the people and our sponsor Pipe is doing that in a big way. Pipe is the world's first trading platform that allows you to trade recurring revenue streams for upfront capital. And with Pipe's new API, companies with recurring revenue can build seamless embedded financing options into their platforms. One of the most interesting uses for Pipe's new API right now is Compass Minings, mine now, pay later, which powers payment plans on Bitcoin mining hardware so more miners can start or scale with a smaller upfront investment. Whether you're looking for mining hardware or scaling any business with recurring revenue, check out Pipe to access growth capital with no loans, no dilution, no restrictive covenants or warrants,

• 2:52Anthony Pompliano?

  just growth on your terms. And right now, Pomp Podcast listeners can access tens of thousands of dollars, even millions, fee-free for 12 months. Whether you are a Bitcoin mining company looking to enable financing for your customers or a SaaS, DTC, or any business that has recurring revenue, sign up at pipe.com/pomp. Again, pipe.com/pomp to start trading today.

• 3:18Speaker 01

  Anthony Pompliano runs Pomp Investments. All views of him and the guests on his podcast are solely their opinions and do not reflect the opinions of Pomp Investments. You should not treat any opinion expressed by Pomp or his guests as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his personal opinion. This podcast is for informational purposes only.

• 3:41Speaker 02

  What's up, guys? Bang, bang. These five to six minute updates every Saturday get you up to speed on exactly what happened in the Bitcoin market. And boy, was this a wild one. All right, let's get into this week's update. To get started, we can see that Bitcoin's trading just above $20,000, about $20,500. We can see that the market cap has drawn all the way down and is now below $400 billion. Now remember, Bitcoin's inflation rate is still sitting about 1.7% and more than 90% of the supply has been issued. We also can see that the real exchange volume over the last 24 hours is $4.56 billion and miners have been paid $18.7 million over the last 24 hours to continue to The most secure computing network in the world. GBTC premium has widened all the way to thirty five percent.

• 4:26Speaker 02

  And of course, we have seen that Bitcoin is down seventy percent from its last all time high. If we then go and we compare Bitcoin, gold and the S and P five hundred. We see that Bitcoin over a one year period is down forty three percent. The S and P five hundred down thirteen and gold is up four percent. But if you look over any other time period, two to ten years, Bitcoin continues to dominate gold and the S and P five hundred. Next up, we can look at the price closing history by each individual level. Bitcoin has spent only five hundred and thirty nine days ever in its life above the current twenty thousand five hundred dollar price point. That's about ten point nine percent. And so if you had bought Bitcoin eighty nine percent of the time and held until today, you would be in profit. If we then go and compare Bitcoin, gold, S and P five hundred, NASDAQ and T L T.

• 5:11Speaker 02

  We see that Bitcoin continues to compound annual growth over the last decade at a hundred and twenty three percent. And the five year sharp ratio is absolutely dominant compared to the other assets. Next, we can switch over and we can take a look at the Blockware Intelligence update. This is Will Clemente and the team over at Blockware. They do a fantastic job. First, we can go ahead and take a look that Bitcoin continues to experience one of its furthest deviations below a two hundred day trend in history. It's also the third lowest in the last ten years. Bitcoin also happens to sit below its four year trend for just the third time ever, according to Blockware. These previous occurrences took place at the bottom of the twenty fifteen bear market and during the March twenty twenty liquidity crisis that was related to COVID nineteen.

• 5:52Speaker 02

  Of course, Bitcoin sits below its two hundred weekly moving average for the only the second time ever with the previous occurrence during that March twenty twenty liquidity crisis. And then in a really interesting chart that we haven't talked about in a long time. You can see that Bitcoin's price sits at the lower bound of its production cost for the first time since the March twenty twenty liquidity crisis. The idea here is that Bitcoin should at a minimum be worth the cost of energy to produce it. It's a fantastic insight coming from Will and the team over there. Now Bitcoin's market price finally sits below its realized price as you can see here with the M V R V Z score sitting right there in that green area. Then, of course, the reserve risk, which was created by Hans from Ikey Guy. You can see that that also is one of the lowest readings in history. Then if we switch and take a look at the derivatives, the block routine all over it.

• 6:37Speaker 02

  There's a large decline about three-month futures basis across the board. And then, of course, if we switch and we take a look, there's over 10 billion. Futures open interest in USD has reached its lowest since December 2020. And then we've started to see some negative funding rates across the board at all venues, but would like to carve out a much longer regime, according to Will and the team. Lastly, the options implied volatility that has driven dramatically upwards as active managers and market makers seek to hedge their positions. That now is just shy of the levels reached in mid-May 2021. Now, remember, just because all these metrics are flashing, saying that Bitcoin is much, much cheaper than it's historically been, doesn't exactly mean that this is the bottom. Nobody has a crystal ball.

• 7:19Speaker 02

  We are operating within a very bearish macro environment. The Federal Reserve continues to hike interest rates and conduct quantitative tightening. And that means that Bitcoin, finally getting the test, how will it perform in a macro bear market? Since inception, it pretty much has been in the longest bull market in history. And so naturally, people wonder, will the macro win out? Or will Bitcoin, the strong fundamental, hash rate hitting all time? Hash rate hitting all-time highs and many other metrics going to continue to accelerate? What will end up winning? Nobody knows, but it's always important to understand what the underlying fundamentals and the metrics of Bitcoin are telling us.

• 7:57Anthony Pompliano?

  Thanks so much for listening to today's episode. I really hope you guys enjoyed this one. Make sure you subscribe on Apple, Spotify, or your favorite podcast player. And if you're looking to try to transition to get a new job in the Bitcoin or crypto industry, we've got you covered. Head over to pompscryptocourse.com. We've developed a curriculum with the top teams across the industry. It's a three-week intensive training program with over 50 events packed into that three-week time period. Go to pompscryptocourse.com to learn more and I'll meet you guys for the next episode.