Q4 2021 failed to live up to expectations, with the Crypto Market ending more or less where it began the Quarter.
Q1 2022 saw the Market bottom out mid way through, and despite events in Ukraine, the latter weeks have seen Crypto Markets strengthen.
Indicators on our Macro charts remain Bullish.
Analysing recent On Chain Metrics, we noticed huge outpouring of Bitcoin and Ethereum from exchanges (around $1.5 Billion Bitcoin in one day from Coinbase).
This can be interpreted in one of two ways. Either Investors are simply stacking their assets off-line for longer term HOLDS (which would be a very Bullish signal). Alternatively, with Sanctions around the globe and the seizing/freezing of assets, nervous Investors are getting their assets away from Centralised Exchanges and onto Hard Wallets.
IN THE NEWS
Exxon Mobil, one of the largest energy companies in the world, is using excess natural gas to mine bitcoin.
Rio de Janeiro to accept tax payments in Bitcoin
Luna Foundation's Bitcoin Reserve Wallet Now Holds $1.1 Billion in BTC
Lugano, Switzerland is making Bitcoin legal tender.
IMF Report March 24, 2022 “The Stealth Erosion Of Dollar Dominance: Active Diversifiers and the Rise of Nontraditional Reserve Currencies””
The Report states “All this suggests is that if $ Dominance comes to an end, then the Green Back could be felled not by the $’s main rivals, but by a broad group of alternative currencies”. This appears to confirm that Central Banks around the world appear to be divesting themselves of US$ assets.
One interpretation of this report is that we could be entering a period of Global Hyperbitcoinisation as part of the “broad group of alternative currencies”.
A link to the report is here : https://www.imf.org/en/Publications/WP/Issues/2022/03/24/The-Stealth-Erosion-of-Dollar-Dominance-Active-Diversifiers-and-the-Rise-of-Nontraditional-515150