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Blockware Intelligence Newsletter: Week 36 | Blockware Market Intelligencewww.blockwareintelligence.com/p/blockware-intelligence-newsletter-e4a
10 sats \ 4 comments \ @ExponentialBTC 7 May 2022 bitcoin
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0 sats \ 3 replies \ @ExponentialBTC OP 7 May 2022
Summary
Powell hiked rates by 50bps on Wednesday, this leads to higher yields and adds continued downside pressure to equities.
The value of the US Dollar is on the rise, in comparison to foreign currencies, this compounds the selling pressure in the general market.
With this, investor sentiment continues to breakdown as institutions capitulate or move short.
Bitcoin transaction fees saw a significant yet temporary jump this week. Pending transaction fees in the mempool reached a level not seen since July 2021 due to Binance UTXO consolidations.
Bitcoin’s hash rate is quickly moving higher after a stagnant few months.
Halfway to the next Bitcoin halving in 2024!
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0 sats \ 2 replies \ @ExponentialBTC OP 7 May 2022
Powell announced a 50bps increase in the Fed Funds Rate, the largest since 2000. The market bounced on this news Wednesday which could indicate that investors were worried about an even larger hike.
Oil prices are also back on the rise this week following the increase in interest rates.
It’s clear that a rising dollar isn’t necessarily because things are going well in the US, it’s more because we’re seeing extreme weakening of the Chinese Yuan, Japanese Yen and Euro.
The number of advancing stocks is at a 3 year low. This indicates that the market is extremely weak (shocker).
Crypto-equities generally track spot Bitcoin’s price with varying degrees of beta. So a weak BTC will cause weak BTC stocks. Maybe one day institutions will realize that these companies can make money regardless of the price of BTC.
[...] BTC trading with NQ essentially tick for tick.
Despite the macro backdrop, under the surface crypto natives are holding tight. The amount of supply that hasn’t moved in at least a year continues to grind to new all-time highs.
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0 sats \ 1 reply \ @ExponentialBTC OP 7 May 2022
Bitcoin Mining
The mempool (where valid Bitcoin transactions wait to be mined by miners) became loaded with transactions. This means there was a temporary backlog in pending Bitcoin transactions, and pending transactions with higher fees means more revenue for miners.
The mempool hasn’t had this much in pending transaction fees since July 2021, nearly a year ago.
Using onchain data, analysts confirmed that the large number of transactions that entered the mempool was Binance consolidating their UTXOs.
Finally, hash rate appears to be taking off again. The 14-day moving average recently passed 220 EH/s.
The demand to acquire Bitcoin with ASICs has never been higher, and Blockware Intelligence expects this growth to continue throughout 2022 and beyond.
Bitcoin recently crossed the halfway mark to the 2024 block subsidy halving. At that point, Bitcoin’s annualized inflation rate will drop from ~ 2% to slightly below 1%.
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0 sats \ 0 replies \ @ExponentialBTC OP 7 May 2022
That last part shared had a link to the following post:
Bitcoin Halving — Blockware Solutions https://www.blockwaresolutions.com/research-and-publications/2020-halving-analysis
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