News Headlines
Price Action
Panic in global markets has seen traditional stocks tumble over the past week. Although Bitcoin is down, on a relative basis it has been holding up well during recent concerns about global trade.
It is currently testing the 1-year moving average, which we have been highlighting in recent Alpha newsletters as a very important support level.
Figure 1: BTC now reaching the 1-year moving average.
In bull markets, $BTC has historically held above the 1-year moving average. The only exception is the March 2020 COVID crash, where $BTC spent a brief time below the 1-year moving average before rallying to new all-time highs.
Figure 2: $BTC trends above the 1-year moving average in bull markets.
If $BTC can bounce here, then the bull market will likely resume. However, if it fails to hold the 1-year moving average, there will be serious doubts about whether this bull market will continue.
The Big Story: Global Markets Sell Off
Donald Trump's imposition of worldwide tariffs on goods entering the US has sent global markets into a frenzy. The uncertainty of how this huge policy shift will play out for global trade has many investors panicking and selling.
While there has been a major rout across traditional stocks in Asian, European, and US markets, Bitcoin’s price has held up relatively well. While stock market declines are making the news headlines, Bitcoin, often considered a highly volatile risk asset, is down just -6.76% over the past week.
Figure 3: Bitcoin’s price down just -6.76% this past week.
We can compare that performance to the major U.S. Indices of the Dow Jones and S&P500, as well as major tech stocks like Apple and Tesla.
Figure 4: $BTC compared to major tech stocks and indices last week.
An asset that has often been considered by many as ‘too volatile’ actually looks very stable compared to other major global assets:
- Bitcoin: +2%
- Tesla: -8%
- Dow Jones: -9%
- S&P500: -10%
- Apple: -15%
Note: Data here is the week leading up to 4 April, as traditional markets were closed over the weekend (5th and 6th April). When U.S. markets open later today, they will likely open up significantly lower relative to Bitcoin. This will highlight even further just how strong Bitcoin’s price has been on a relative basis recently.
Are people waking up to the fact that Bitcoin is a hedge against all these geopolitical issues? That Bitcoin can’t be inflated away like fiat currencies? That it can’t have tariffs forced upon it, and in fact, it appears to be highly regarded by this new U.S. administration? It would appear so.
Live Chart Review: Bitcoin Hashrate
Figure 6: Bitcoin Hashrate (7-day moving average)
What is Hashrate?
Bitcoin hashrate is a metric connected to the process of Bitcoin mining.
Bitcoin mining is the process of solving complex mathematical puzzles to be rewarded with bitcoin. The process of Bitcoin mining secures the network and also confirms that transactions on the blockchain are correct.
Mining hash rate is therefore a key security metric for Bitcoin. That is because the greater the levels of hashing power (can be thought of as computing power) that is operating on the network, the harder it would be for someone to overpower and attack the network.
Latest data
The chart above shows that Bitcoin’s hashrate continues to make new all-time-highs. Indicating that the network is more secure than ever.
The Bitcoin Magazine Pro live chart allows the user to toggle between a 7-day moving average view, which is useful for longer-term trends, and daily values.
The daily values chart shows that Bitcoin Hashrate just made a new all-time-high of more than 1 Billion TeraHash.
Figure 7: Bitcoin Hashrate - daily values.
This new all-time high in hashrate is yet another incredible achievement for Bitcoin. As global adoption and demand for Bitcoin continues over time, it is likely that its hashrate will continue to climb even higher.
Up only!
The Bitcoin Magazine Pro Team.