#896 Bitcoin Poised To Go Higher As Recession Looms - 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 how Bitcoin compared to other assets, how Luna is Bitcoin's current whale in the market, and how Bitcoin's price relates to the recent Inverted Yield Curve. To see the video with the corresponding charts that I reference throughout the interview, go to the Anthony Pompliano YouTube Channel ======================= Today’s episode is brought to you by Coinbase Wallet, your key to the world of crypto. Crypto wasn’t made to just buy, sell, and hodl. With Coinbase Wallet, you can do so much more: Collect more NFTs, earn more with DeFi, and trade more than 4,000 tokens. Whether you’re looking to play, stake, spend, or just explore a trending new protocol — Coinbase Wallet is your key to more. Long-time HODLers already know that wallets are a must-have if you want complete control of your crypto. That’s why Coinbase Wallet makes self-custody simple, while providing the safety and security of the most trusted name in crypto. Visit http://coinbase.com/wallet to learn more. ======================= If you’re a regular listener of the podcast, I would bet that two things are true: First: You’re passionate about Web3 and protecting your personal data And two: that you’re a human. If I’m right, then congratulations! You’re entitled to all the benefits of the decentralized web. But there’s a catch: As Web3-enabled tech — like NFTs, smart contracts, and DAOs — drive more elements of our “real world” lives online, proving that you’re a person – without surrendering personal data – becomes exponentially more valuable. And exponentially more difficult. This is why Unstoppable Domains launched Humanity Check. Humanity Check proves that you’re, well, you – without revealing personal data. No matter where you go on the web, you’ll have total control over which apps you want to share data with…and which ones you don’t. Prefer to be completely clouded in mystique? No worries - Humanity Check is 100% opt in. If you want to feel alive, or at least prove you are, head to http://UnstoppableDomains.com and get your NFT domain with Humanity Check. ======================= Cryptocurrencies offer boundless potential, but how will you protect your crypto? Arculus is the next generation crypto cold storage wallet that combines the world’s strongest security protocols on the Arculus Key Card with an easy-to-use Arculus Wallet App. With over 20 years of experience developing leading-edge secure payment technologies, CompoSecure created Arculus to give you the power to protect your financial future. You can buy, store, swap, send and receive your crypto with a simple tap of your Arculus Key Card to your mobile device. Your private keys are encrypted on the Arculus Key Card and they never leave it. Stay safe from hackers with no cords; no charging; no Bluetooth. The only person accessing your crypto... is you. Buy Arculus on Amazon today at https://amazon.com/arculus =======================

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. We try our best to go through the on-chain metrics and explain what the hell is happening with Bitcoin and why has the price been falling. 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. Today's episode is brought to you by Coinbase Wallet, your key to the world of crypto. Crypto wasn't made to just buy, sell, and hold. With Coinbase Wallet, you can do so much more. Collect

• 0:47Anthony Pompliano?

  more NFTs, earn more with DeFi, and trade more than 4,000 tokens. Whether you're looking to play, stake, spend, or just explore a trending new protocol, Coinbase Wallet is your key to more. Longtime holders already know that wallets are a must-have if you want complete control of your crypto. That's why Coinbase Wallet makes self-custody simple while providing the safety and security of the most trusted name in crypto. Visit Coinbase.com/wallet to learn more. Again, that's Coinbase.com/wallet and learn more today. Today's episode is brought to you by Unstoppable Domains. If you're a regular listener of this podcast, I'd bet that the two things are true. First, you're passionate about Web 3 and protecting your personal data, and two, you're a human being. If I'm

• 1:30Anthony Pompliano?

  right, then congratulations, you're entitled to all the benefits of the decentralized web. But here's the catch. As Web 3-enabled technology like NFTs, smart contracts, and DAOs dive more elements of our real-world lives online, proving that you're a person without surrendering your personal data becomes exponentially more valuable and exponentially more difficult at the same time. This is why Unstoppable Domains launched Humanity Check. Humanity Check proves that you're, well, you, without revealing any of your personal data. No matter where you go on the web, you'll have total control over which apps you want to share your data with and which ones you don't. Prefer to be completely clouded and mystique? No worries, Humanity Check is one of them. 100% opt in. If you want to feel alive, or at least prove you are, head to unstoppable

• 2:15Anthony Pompliano?

  domains.com today and get your NFT domain with humanity check. Again, head on over to unstoppable domains.com and get your NFT domain with humanity check today. Today's episode is brought to you by Arculus. Cryptocurrencies offer boundless potential, but how will you protect your crypto? Arculus is the next generation crypto cold storage wallet that combines the world's strongest security protocols on the Arculus key card with an easy to use Arculus wallet app. With over 20 years of experience developing leading edge secure payment technologies, CompuServe created Arculus to give you the power to protect your financial future. You can buy, store, swap, send and receive your crypto with the simple tap of your Arculus key card to your mobile device. Your private keys are encrypted on the Arculus key card and

• 2:59Anthony Pompliano?

  they never leave it. Stay safe from hackers with no cords, no charging, no Bluetooth. The only person accessing your crypto is you. You can buy Arculus on Amazon today. Go check it out and see what all the hype is about. All right, let's get in this episode. I hope you guys enjoy this one.

• 3:15Speaker 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.

• 3:39Anthony Pompliano?

  There's all kind of chaos and uncertainty across global markets, but Bitcoin's price has been grinding up higher and higher. So let's take a look at what's been going on this past week. First, if we look at the Bitcoin market, you can see that we're trading around $46,500. That's outperforming most other assets over the past week. If we then take a look at the Bitcoin network itself, what we can see is that the Bitcoin market cap is just under $900 billion. Now about 90% of the supply has been issued and the 19th million Bitcoin has now officially been put into circulation. The real exchange volume is $1.98 billion and miners were paid $42.5 million over the last 24 hours. To continue to secure Bitcoin, the most secure computing network in the world.

• 4:24Anthony Pompliano?

  Bitcoin is also trading at 40% up from the cycle low. But Bitcoin has only ever been 210 days higher than the current price point. So for over 95% of Bitcoin's life, it was at a lower price point. This is important because if you continue to dollar cost average, you're probably in a pretty good position. If we then take a look at the compound annual growth rate, what we can see is that Bitcoin's 10-year compound annual growth rate is 150%. That is destroying anything, including the S and P, which is only 12.4% or the NASDAQ at 16.6%. Bitcoin continues to compound at an incredible pace and it doesn't have any signs of slowing down anytime soon. Now, if we take a look at on-chain metrics, we'll go to Will Clemente and the Blockware team.

• 5:08Anthony Pompliano?

  They put together some great charts this week. On it first, we see the short-term holder realized price. We're just above it, but according to Will, we're going to have to see another day or two of closing above this level. That short-term holder realized price, it's important to trade above it. We're there now, but let's see if it holds. Then if we go ahead and we take a look at the next chart, what we can see is that the Luna Bitcoin Holdings. Now, as a reminder, Luna has the USD, which is a stablecoin. They're backing it with Bitcoin. And you can see here in this green line that they continue to stack more and more Bitcoin. They have $3 billion in reserves. They're going to convert into Bitcoin with a goal of eventually reaching $10 billion in Bitcoin. Anytime that you have a persistent buyer in the billions of dollars coming into the market, of course, the price is going to be positively impacted.

• 5:53Anthony Pompliano?

  And what you can see is pretty much as soon as they started to buy, that price started to skyrocket upwards. If we then take a look at the Bitcoin balance on exchanges, what we can see is this green line falling off a cliff since early March. That shows that people who have bought Bitcoin or were holding it on those exchanges are taking it off into self custody. That shows that people who had Bitcoin on exchanges who had recently bought it, they actually are moving it now, taking it off that exchange into self custody or cold storage. That's a great sign for Bitcoin bulls because what it means is that there's less Bitcoin on the exchange that simply in a couple of clicks could be sold into the market. Less sell pressure on the market obviously means that the price is likely to be bullish. If we then go ahead and we take a look at the OT desk.

• 6:38Anthony Pompliano?

  If we then go ahead and we take a look at the OTC Desk Holdings as well, we can see that they have fallen off a cliff as well. This is just another signal showing that there is low cell pressure, meaning that the bulls are in control, the price continues to grind upwards, and every single data point we have shows that it's likely to continue. And then last but not least, if we take a look at that illiquid supply shock ratio, we can see that that has ticked up aggressively in the last week. That green line climbing towards the moon. What this tells us is that more and more and more people are holding Bitcoin. They're not willing to sell it. Over 70% of Bitcoin has not been sold in the last year that's in circulation. That's a big deal because when you have a persistent buyer like Luna

• 7:21Anthony Pompliano?

  or even MicroStrategy with their brand new $205 million loan that they took from Silvergate against their Bitcoin collateral, that's hundreds of millions or billions of dollars pouring into a market that's highly illiquid, that usually spells for a bullish outlook. Then lastly, if we shift to the macro environment, we can see Dylan Leclerc pointing out that officially the 10 and 2-year yield curves have officially inverted. Once you get this inversion historically, it signals that there is a recession that is looming. Now, that recession doesn't usually happen right away. It can take anywhere from 6 to 18 months to actually go ahead and play out. In some cases, it happens on the shorter end. On other cases, it happens over a longer period of time. But anytime you get a yield curve inversion,

• 8:04Anthony Pompliano?

  you have to start asking yourself, where's the recession going to come from? When is it going to happen? Ultimately, this yield curve inversion tells us one thing. People are going to be seeking safety. And regardless of whether Wall Street treats Bitcoin as a risk asset or not, the everyday average person, they treat Bitcoin as their reserve asset. They continue to dollar-cost average. We have an illiquid market, there's plenty of persistent buyers, the price is grinding up, and even with a recession potentially looming 6 to 18 months away, Bitcoin looks not only healthy, but it looks like we're poised for a move higher. I hope that you enjoy these breakdowns every single week. Next week, I'll be back with Will Clemente from Blockware. If you

• 8:47Anthony Pompliano?

  Don't go follow him on Twitter, go follow Dylan and we'll be back next Saturday. 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.