Bitcoin in Miami | BetaShares

Bitcoin in Miami

BY Justin Arzadon | 19 April 2022

The Annual Bitcoin Conference came to an end last Sunday in Miami, and although attendance was at all-time high with over 30k attendees, the price of bitcoin fell back below US$40k for the first time since mid-March, and the rest of the crypto market dropped along with it. At the time of writing, bitcoin was trading at $40,388.

Ether fell slightly more, down -6.23% vs bitcoin’s -5.39% over the last seven days.

Bitcoin’s market cap fell to $767.9B, market dominance is at 40.83%, and the entire crypto market dropped to $1.88T.

Price High Low Change from previous week
BTC (in US$) $40,388 $43,376 $39,373 -5.39%
ETH (in US$) $3,042 $3,303 $2,962 -6.23%

Source: CoinMarketCap. As at 17 April, 2022. Past performance is not indicative of future performance. Performance is shown in U.S. dollars and does not take into account any USD/AUD currency movements.

Source: Glassnode. Past performance is not indicative of future performance.

News we are keeping an eye on

Jack Dorsey and Elon Musk, CEOs of Block and Tesla respectively, are teaming up with Blockstream for an ambitious bitcoin mining venture located in Texas. The announcement was made on-stage at the Bitcoin Conference by Blockstream CEO, Adam Back. CNBC reported that the Bitcoin mine will use Tesla’s 3.8-megawatt solar PV array and 12-megawatt-hour Megapack for its power source. Back told CNBC, “This is a step to proving our thesis that bitcoin mining can fund zero-emission power infrastructure and build economic growth for the future.” Many of the concerns around bitcoin relate to the emissions mining can produce and the amount of energy used, so this project has the ability to change the narrative in a big way. The mine is expected to be up and running by the end of the year.1

Also announced at the Bitcoin Conference, three of the world’s largest payments providers, Shopify, NCR and Blackhawk Network, have partnered with Strike to enable bitcoin payments at stores throughout the U.S. Strike is a payment app that allows users to send funds anywhere in the world through the Bitcoin Lightning Network. The company CEO, Jack Mallers, is a leader in global adoption and development toward nation-state Bitcoin usage. On-stage at the conference, Mallers explained “You’re gonna be able to walk into a grocery store, to Whole Foods, to a Chipotle, if you want to use a Lightning node over Tor, you do that. Any online merchant that uses Shopify can accept payments without the 1949 boomer [credit card] network, receive it instantly, cash final, no intermediary, no 3% fee.”2

Block, Inc. had three additional announcements at the Bitcoin 2022 Conference, announcing new bitcoin services for the company’s mobile payment platform, Cash App. The app will feature a “paid in bitcoin” service that allows users to auto-invest their work pay into bitcoin (BTC) converting 1% or up to 100% of their payroll into BTC. The second service is a bitcoin round-up service which allows app users to round up spare change from purchases into BTC and automatically transfer the change to the user’s BTC wallet. The third feature announced was “Lightning Network (LN) Receives” with a seamless Bitcoin user experience. Users will be able to leverage unified QR codes and can combine both LN invoices and on-chain information to make the process easier for users to accept LN payments directly.3

On-chain metrics

Bitcoin (BTC): Number of Active Addresses (14-day moving average) shows the number of unique addresses that were active in the network either as a sender or receiver. Only addresses that were active in successful transactions are counted. Taking a look at this metric can identify whether the network user-base is declining, recovering or growing, and where it currently sits compared to other cycles.

Looking at data from on-chain analytics company Glassnode, the number of active addresses using a 14-day moving average continued to decline from November levels and is well of the peak last seen in May. This data suggests that there is little growth in the user-base and lack of new demand.

Source: Glassnode.

Bitcoin (BTC): Number of Addresses with Balance > 1k shows the number of unique addresses holding at least 1k coins. Looking at this metric can indicate the sentiment from these larger addresses (considered as whales) who have the ability to move in and out with scale.

Based on the chart, the number of addresses with balances > than 1k BTC spiked significantly on Feb 28th, and has continued to maintain that level. The data suggests that larger entities took the opportunity to sell a little off the top at the most recent high of $48k, but most have continued to hold and have started to accumulate once again give the recent sell-off back to $40k.

Source: Glassnode.

Altcoin news

The long-awaited Ethereum Merge that was expected in June might not come until the fall, according to Ethereum core developer Tim Beiko. This is not the first delay, with the project originally slated for completion back in 2019. Although Ethereum passed another major test last Monday in testing, three bugs were recently revealed that still need to be worked out before the update will be ready.

The Merge is to transition the network from the proof-of-work (PoW) consensus mechanism that bitcoin also uses, to proof-of-stake (PoS). PoW is often criticised for the mining process used to validate transactions and secure the network, considering how energy-intensive it is. PoS, which secures the network through “staking“, is expected to cut the network’s energy costs by 99% and make it easier for Ethereum to scale. According to Beiko’s tweet, “It won’t be June, but likely in the few months after. No firm date yet, but we’re definitely in the final chapter of PoW on Ethereum.”

Investing in crypto assets or companies servicing crypto-asset markets should be considered very high risk. Exposure to crypto assets involves substantially higher risk when compared to traditional investments due to their speculative nature and the very high volatility of crypto-asset markets.

Investing in crypto assets or crypto-focused companies is not suitable for all investors and should only be considered by investors who (i) fully understand their features and risks or after consulting a professional financial adviser, and (ii) who have a very high tolerance for risk and the capacity to absorb a rapid loss of some or all of their investment.

Any investment in crypto assets or crypto- focused companies should only be considered as a very small component of an investor’s overall portfolio.





Off the Chain will be published every Tuesday, and provide the latest news on bitcoin and the rest of the crypto market along with analysis and insights into the world of crypto.

It provides general information only and is not a recommendation to invest in any crypto asset, crypto-focused company or investment product.

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