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TBL Weekly #3
Our weekly recap of The Bitcoin Layer posts and videos.
Kick off your Saturday morning with a recap of all the content you may have missed this week at The Bitcoin Layer. Grab a coffee, and let’s dig in.
Nik joined MacKenzie Sigalos in his first CNBC appearance to discuss the contagion from bitcoin’s bear market:
Nik breaks down bitcoin’s recent 75% crash from its all-time-high, explaining why is this normal, and why you shouldn’t worry. This one is packed with our Fair Valuation Framework and some bitcoin history:
Bitcoin miners are getting squeezed, with plummeting revenues forcing unprofitable machines off the network.
We cover the periodic cleansing of the bitcoin mining ecosystem, discuss the forced selling of bitcoin from miners’ reserves in order to keep the lights on, and why final miner capitulation marks local bottoms and will signal a trend reversal for bitcoin:
Nik discusses why GDP is not useful in asset allocation and why you need leading economic indicators instead to help identify shifts in the business cycle:
The rates market is pricing in easier monetary policy by next year. This is already starting to support risk assets, including stocks and bitcoin:
And finally, here is our Market Analysis for the week, including all relevant price action, rolling correlations, proprietary metrics, and value ratios. This week, we introduce our correlation monitor, showing readers bitcoin’s correlation with stocks (very high), the dollar, and ETH/BTC (also very high). More on this in the coming weeks. Bitcoin remains right around its fair value:
Metrics are as of Friday, July 15, 2022.
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