The Pomp Podcast - #840 How Bitcoin On-Chain Is Looking After Russia/Ukraine War Begins

Starting point is 00:00:00 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.

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Starting point is 00:03:01 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. What's up, guys? Bang, bang. Here's your weekly update on Bitcoin, on-chain metrics, and the market structure. First, let's take a look. Bitcoin's price is sitting right around $39,000. That's up about 10% over the last 24 hours or so. As we've seen, Russia invade Ukraine. At first, Bitcoin sold off, but ultimately has come roaring back. And that 10% gain is pretty telling about how the global market is looking at Bitcoin in times of geopolitical uncertainty.

Starting point is 00:03:43 If we then look deeper into the actual Bitcoin network, what we can see with those statistics, So we're sitting right around $750 billion market cap. 90% of the supply has already been issued and is in circulation. About $12.9 billion has been settled on-chain the last 24 hours. And miners were paid about $36 million over the last 24 hours to actually secure the strongest computing network in the world, the Bitcoin network. Ultimately, Bitcoin's down 43% from its all-time high, but it's up about 20% from its local low.

Starting point is 00:04:17 And so Bitcoin continuing to do exactly what it was designed to do, produce block after block after block of transactions, no matter what's happening in the world. And that's why Bitcoin continues to work exactly as designed. Now, if we jump into and look at Bitcoin compared to gold, S&P 500, Nasdaq and TLT, what we can see here is that Bitcoin continues to grow at a compound annual growth rate of 145% over the last 10 years. It is absolutely incredible. It also maintains a 1.5 sharp ratio, which is double gold's and about double the S&P 500. Now let's dive into some of the on-chain metrics and what we can see on-chain or in the market structure is the open interest. You can see here that since December or so, open interest, that's all that leverage had been growing in size. But what we saw on the far right of this chart is

Starting point is 00:05:09 that since Russia invaded Ukraine, there was quite a bit of a short squeeze there. A ton of that open interest has fallen off. Those are people who had leverage and that move upwards, that 10% gain wiped out a lot of that interest. This comes from the Blockware newsletter, which is fantastic. Will Clemente and the rest of the team looking at some of these metrics. Then if we continue and we look at the supply metrics, what we can see is that about 76.5% of Bitcoin supply has not moved in the last six months. It's an all time high. That blue line just going up into the right 76 and a half percent of all of Bitcoin circulating supply has not moved in at least six months. Then if we continue, one of the things that I think is a long term trend that's really important

Starting point is 00:05:54 to watch is this idea of where the Bitcoin supply resides here. Willy Woo provided in this chart green. That's that big one that jumps up at the beginning. That is Wales. People with a thousand bitcoin or more the pink is the retail traders and what we saw is back in 2019 into 2020 that's when retail overtook the whales retail holds more bitcoin now than whales and it's only continuing to head in that direction as retail gains more and more bitcoin the whales have less and less within their control and so ultimately what we're seeing is that bitcoin it's serving as a great store of value, even in times of political instability. Bitcoin is something that not only has financial benefit, but there's a lot of people in the Ukraine that are either raising

Starting point is 00:06:43 money via Bitcoin that avoids any sort of financial censorship, or they're taking their wealth. They're trying to get into Bitcoin, and then they're heading for the border, whether it's Poland or elsewhere. They want to get out of the country. They want to get out of harm's way. They want to take care of their families, and Bitcoin is a tool to help them do that. Hope you enjoyed this quick deep dive on Bitcoin this week. And we back at it again next week with Will and the rest of the team. Until then, have a great weekend and I'll see you next week. Thanks so much for listening to today's episode. I really hope you guys enjoyed this one. Make sure you're subscribed on Apple, Spotify, or your favorite podcast player. And if you're looking to try to transition to get

Starting point is 00:07:19 a new job in the Bitcoin or crypto industry, we've got you covered. Head over to palmscryptocourse.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.

The Pomp Podcast - #840 How Bitcoin On-Chain Is Looking After Russia/Ukraine War Begins

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