#999 Bitcoiners Are Not Selling - BTC On-Chain Analytics

In today's episode, I break down Bitcoin On-Chain Analytics. I go through the Blockware Newsletter to help you understand what happened this past week in Bitcoin. In this weeks update, I talk about Inflation hitting a 40 year high, Bitcoin's hash rate and miner update, and how 65% of supply has not moved in the past year. To see the video with the corresponding charts referenced throughout the interview, go to my Anthony Pompliano YouTube Channel ======================= BCB Group is the leading payment services partner for the digital assets industry. BCB Group provides payment services in 30+ currencies, FX, cryptocurrency liquidity, digital asset custody and BLINC, which is BCB’s free, instant settlements network for the BCB client ecosystem. Find out more by visiting bcbgroup.com/pomp ======================= 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 bcbgroup.com/pomp today. Again, if you want to learn more, go to bcbgroup.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.

• 3:41Anthony Pompliano?

  Inflation came in at a 40-year high this past week and Bitcoin, everyone wants to know what is going on? Is it an inflation hedge asset? Is it a safe haven? First, if we take a look at Bitcoin, we can see that it's trading just below $30,000 or so, which is down 2.83% over the last 24 hours. Then if we take a look at the actual network itself, we can see that the market cap of Bitcoin sits at $550 billion. The current inflation rate is at 1.76%, 90% of all Bitcoin has already been issued into the circulating supply. The real exchange volume over the last 24 hours is $3.8 billion. Miners have been paid $27 million over

• 4:20Anthony Pompliano?

  Last 24 hours to continue to secure the decentralized network of Bitcoin. The GBTC premium is actually a discount. It's down more than 25% from its NAV. And of course Bitcoin is down 57% from its all time high. If we then go ahead and we compare Bitcoin, gold and the S and P 500 over the last year Bitcoin's down 20% and gold and S and P are negative as well. But over a two to 10 year timeframe Bitcoin continues to drastically outperform both of these other assets. Then if we take a look at the price, what we can see is that Bitcoin at this point has traded above this level for 507 days in its entire life. That means 89% of the time, if you had bought Bitcoin and held till today, you would be up

• 5:02Anthony Pompliano?

  in terms of US dollar value. Then if we go ahead and we take a look at Bitcoin compared to other assets, we can see Bitcoin versus gold, S and P 500, NASDAQ and TLT. Bitcoin's compound annual growth rate is 135%, drastically outperforming the other assets. And Bitcoin's five year sharp ratio continues to dominate, sitting at 1.11, meaning that if you take Bitcoin and you put it into a portfolio, it has a number of advantageous properties. Now, of course, looking at the actual metrics of Bitcoin in terms of its network health and its comparison on a financial standpoint to other assets is helpful. But let's dig into on-chain metrics. No one does it better than the team over at Blockware and Will Clemente. First, we can start out with a price temperature of Bitcoin.

• 5:45Anthony Pompliano?

  And to illustrate the significance of this current drawdown, what we see is that many standard deviations of market price is near a four-year trend. Bitcoin approaching that four-year trend, which sits just above 21,000. Next up, we can go ahead and take a look at short-term holders and the percentage of total supply and profit held by those short-term holders. It continues to retest its historical lows. Then we can switch and take a look at one of the lowest readings in short-term holder profit-loss ratio. And we can see that we continue to sit firmly below the neutral level. As we take a look at traditional bear market behaviors, we can see that short-term holders both capitulate and age past that 155-day threshold into long-term holders.

• 6:30Anthony Pompliano?

  And so if we take a look, looking at the on-chain cost basis, we see that on-chain cost basis coming closer and closer with price. Another bottom signal that they continue to watch is that they're looking at the market price pushing below the aggregated realized price. And so what you can see here is that it's getting close. The team over at Blockware doesn't want to sound like a broken record these last few weeks, but there's not much to do but simply wait. On the derivative side, they don't see anything really changing. The spot premium to futures has persisted for months now, and one of the longest regimes of which in Bitcoin's history. Then if you take a derivative of premium, the aggregated funding rates for perpetual

• 7:12Anthony Pompliano?

  futures, those remain muted as well. Next up, if we take a look at hash price, what we can see is that the miners are essentially short hash rate, short difficulty, and long the Bitcoin price. And with that in mind, miner margins have been getting broadly compressed with hash rising, difficulty rising, and the price dropping. If we go ahead and take a look at that margin compression, we can see that it's led to some selling of inventory from miners, something to keep an eye on, and it will be expanded upon more in the mining sector in the future. Remarkably, though, the amount of Bitcoin supply that hasn't moved in at least a year continues to climb, and now we are at an all-time high.

• 7:52Anthony Pompliano?

  65.5% of all Bitcoin circulating supply has not moved in at least a year. And lastly, that Asian trading premium that we've been talking about for the last couple of weeks, it's starting to come down slightly, and something that has been a good signal over the last two years, and everyone will continue to monitor. The team over at Blockware does a great job with the on-chain metric, and I highly suggest that you go ahead and subscribe to their newsletter. And of course, you yourself, using on-chain metrics or a variety of other tools, can go look at the various data points on the blockchain yourself. I hope you enjoy these updates, and I'll see you guys 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.

• 8:35Anthony Pompliano?

  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.