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BTC and Gold
BTC and US 2 Year Treasury Yield
BTC and USD/CNY
BTC and EUR/CHF
BTC and VIX
BTC and SMAs
BTC briefly moved past the 200 SMA on the 19th January as it moved near $9.2k before correcting towards $8.7k for the day.
CME Futures
Sentiment remains unchanged from the large shift we saw last week as institutional buyers moved away from a predominately short stance.
Fundamentals
Localbitcoins - Venezuela
Localbitcoins has seen the highest trading volume in Venezuela (Bolivar denominated) since the platform launch. This represents a 7% increase from the week before.
If we look at the BTC denominated trading volume we can see a steady trend upwards emerging since July 2019. This comes at the same time when the country continues to see increased political instability and economic weakness.
Localbitcoins - Kenya
Kenya has continued to see positive momentum in the same period and it is becoming more common to see volume trading closer to 60 BTC. The average wage is 6% of the value of 1 BTC in USD terms.
Confirmed Transactions Per Day
Confirmed transactions has increase in the last week at ~313k transactions yesterday (down 1% for the week). Transactions per day is up 13% YTD.
Mean Transaction Value
The mean transaction value has increased 10% for the week and 61% YTD.
Bitcoin Economic Throughput
Bitcoin economic throughput is a measure of financial bandwidth per unit of time on the Bitcoin network. It is simply calculated by taking the average transaction size and multiplying it by the number of transactions.
Current economic throughput is up 9% hovering around $1.68Bn USD (81% YTD)
Hashrate
Bitcoin hashrate (7 day moving average) is up 1% for the week. Hashrate is up 159% YTD. Currently at 107m TH/s on the 7 day moving average.
Daily Active Addresses
The daily active addresses count for Bitcoin is up 7% from the last week. Active address count is still 44% YTD.
Bitcoin Days Destroyed
Bitcoin Days Destroyed (BDD) is an alternative metric for transaction volume on the Bitcoin network. It is calculated by taking the number of Bitcoins in a transaction and multiplying it by the number of days it has been since those coins were last spent.
During the last week there has not been any significant BDD activity observed.
Lightning Nodes
The number of unique lightning nodes with channels on the Bitcoin network has been flat for the week. The number of nodes is up 115% YTD.
Lightning Channels
There are 28k unique channels on the lightning network is largely flat from the previous week. The BTC capacity on the Lightning Network has also remained flat (total capacity is ~859 BTC).
Wrapped BTC
Wrapped BTC (WBTC) is an ERC20 token backed 1:1 with Bitcoin.
The total value of Wrapped BTC is up 1% at 601 BTC.
BTC Days Since All Time High
Tweet of the Week
Our ‘Tweet of the Week’ comes from PlanB who has written a follow up piece to his S2F model article that gained attention throughout 2019. This more recent essay is a direct response to the Efficient Market Hypothesis (EMH). To put simply, a recognition of an efficient BTC market is reasonable but the risk associated with investing in BTC have been largely overestimated by many highlighting one of the benefits of pricing BTC with a S2F model over a classic ‘risk & return model’.
About the Author
Lewis Harland is an analyst at ID Theory and is a full time researcher of decentralised networks and cryptoassets.
ID Theory Ltd. is an Investment Advisor for cryptoasset investment fund, IDT Crypto Asset Fund Ltd.
Interested in partnering with ID Theory or building something special? Get in touch through our website or at info@idtheory.io.