Sam Martin

<div id="highlights-block_617725d07bf3f" class="highlights">
        <ul>
                <li>Bitcoin miners are accumulating BTC at record pace</li>
                <li>Perpetual funding rates remain neutral despite increase in exchange leverage ratio</li>
            </ul>
    
</div>



<p>Bitcoin was last trading near $51,500, up over 10% over the last seven days according to data from <a href="https://www.coingecko.com/en" target="_blank" rel="noreferrer noopener">Coingecko</a>.</p>



<p>Bitcoin miners are accumulating BTC at a record pace.</p>



<p>Some BTC metrics signal that caution is warranted at current price levels. </p>



<p>Perpetual funding rates are neutral, implying no bias toward the upside or downside. </p>



<h3><strong>Latest in Macro:</strong></h3>



<ul><li>S&amp;P 500: 4,791, +1.38%</li><li>NASDAQ: 15,871, +1.39%</li><li>Gold: $1,812, +0.15%</li><li>WTI Crude Oil: $76.01, +3.01%</li><li>10-Year Treasury: 1.477%, -0.016%</li></ul>



<h3><strong>Latest in Crypto:</strong></h3>



<ul><li>BTC: $51,134, -0.40%</li><li>ETH: $4,070, -0.80%</li><li>ETH/BTC: 0.0796, -0.66%</li><li>BTC.D: 40.00%, -0.22%</li></ul>



<h3>Bitcoin miners are confident</h3>



<p>Bitcoin was last trading near $51,500, up over 10% over the last seven days according to data from <a href="https://www.coingecko.com/en" target="_blank" rel="noreferrer noopener">Coingecko</a>.</p>



<p>&#8220;Miner Reserves, Mean Coin Age, and the Hashrate continued trending higher as BTC price fell. This is a very bullish signal indicating older coins and miners are not aggressively distributing during the sell off. The increasing Hashrate is a sign of Miner’s confidence in the network. Even with a 39% pullback over a month, Miners continued to add hash further securing the network,&#8221; <a href="https://cryptoquant.com/quicktake/61c5f3fb1924fb052c763cb9-Onchain-and-Technical-Bullish-Divergence-Suggest-Bottom-Likely-In?utm_source=twitter&amp;utm_medium=sns&amp;utm_campaign=Quicktake&amp;utm_content=DanBTC916" target="_blank" rel="noreferrer noopener">wrote</a> @DanBTC916, an Analyst at CryptoQuant.</p>



<p>Noelle Acheson, head of market insights at Genesis, took to <a href="https://twitter.com/NoelleInMadrid/status/1475549438970052609?s=20" target="_blank" rel="noreferrer noopener">Twitter</a> noting similar observations: &#8220;We’ve seen a flurry of announcements recently about BTC miners’ plans to increase capacity *significantly* over the coming months. An often-overlooked detail is that this is being done with bank- or market-based financing.&#8221;</p>



<p>Noelle continued, &#8220;Miners turning to financing vehicles for expansion means that they don’t need to sell their BTC. Indeed, miner unspent supply (new BTC held rather than sold in the market) last week reached an all-time high.&#8221;</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="576" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/miner-activity-1024x576.png" alt="" class="wp-image-13183" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/miner-activity-1024x576.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/miner-activity-1024x576.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/miner-activity-1024x576.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/miner-activity-1024x576.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/miner-activity-1024x576.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/miner-activity-1024x576.png?w=464 464w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/miner-activity-1024x576.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/miner-activity-1024x576.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/miner-activity-1024x576.png?w=1800 1800w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: Glassnode</figcaption></figure></div>



<h3>Signs that caution is warranted</h3>



<p>The BTC:all exchanges estimated leverage ratio, which is the amount of open interest across all exchanges divided by their BTC reserves, is hovering near annual highs. This suggests that there could be one last flush out of leveraged players before BTC can make another run.</p>



<p><a href="https://cryptoquant.com/quicktake/61c5bfbec96eb030c8ad50f0-Close-to-a-bull-trap-before-pushing-up-again?utm_source=twitter&amp;utm_medium=sns&amp;utm_campaign=Quicktake&amp;utm_content=DELOREANKT" target="_blank" rel="noreferrer noopener">According</a> to CryptoQuant analyst, Marc Deloreankt, we have two bad signals near the corner:</p>



<ul><li>1st: Big leverage ratio. The biggest one in two years. So soon, we probably will have a drop, or long liquidation to clear retail investors in next days.</li><li>2nd: No big bank outflows since last drop on May &#8217;21. This is not normal and this is another bad sign.</li></ul>



<div class="wp-block-image"><figure class="aligncenter size-full"><img decoding="async" loading="lazy" width="488" height="490" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-2.59.51-PM.png" alt="" class="wp-image-13189" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-2.59.51-PM.png?w=488 488w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-2.59.51-PM.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-2.59.51-PM.png?w=150 150w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-2.59.51-PM.png?w=256 256w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-2.59.51-PM.png?w=260 260w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-2.59.51-PM.png?w=218 218w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-2.59.51-PM.png?w=80 80w" sizes="(max-width: 488px) 100vw, 488px" /><figcaption>Source: CryptoQuant</figcaption></figure></div>



<p>On a positive note for the bulls, perpetual funding rates are essentially neutral which signals little bias towards the upside or downside on BTC.</p>



<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="626" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/funding-rates-1024x626.jpg" alt="" class="wp-image-13190" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/funding-rates-1024x626.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/funding-rates-1024x626.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/funding-rates-1024x626.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/funding-rates-1024x626.jpg?w=420 420w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/funding-rates-1024x626.jpg?w=427 427w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/funding-rates-1024x626.jpg?w=358 358w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/funding-rates-1024x626.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/funding-rates-1024x626.jpg?w=1106 1106w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Source: @eliasimos</figcaption></figure>



<h3>Google search interest for Bitcoin</h3>



<p>Jameson <a href="https://cms.blockworks.co/jameson-lopp-doesnt-want-to-be-found/" target="_blank" rel="noreferrer noopener">Lopp</a>, co-founder and CTO at Casa Hodl, <a href="https://twitter.com/lopp/status/1474796466304659457?s=20" target="_blank" rel="noreferrer noopener">wrote</a>, &#8220;Countries with the highest relative search interest for Bitcoin have changed significantly from 2020 to 2021! While it&#8217;s no surprise to see El Salvador at #1, it&#8217;s notable that it wasn&#8217;t even on the list of 66 countries for which Google logged search interest in 2020. El Salvador surged from 150th to 1st place for relative Bitcoin search interest in 2021.&#8221;</p>



<div class="wp-block-image"><figure class="aligncenter size-full"><img decoding="async" loading="lazy" width="411" height="262" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/google-trends.png" alt="" class="wp-image-13194" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/google-trends.png?w=411 411w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/google-trends.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/google-trends.png?w=403 403w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/google-trends.png?w=409 409w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/google-trends.png?w=344 344w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/google-trends.png?w=80 80w" sizes="(max-width: 411px) 100vw, 411px" /><figcaption>Source: Google Trends</figcaption></figure></div>



<h3>NFTs</h3>



<p>Trading data from <a href="https://opensea.io/rankings" target="_blank" rel="noreferrer noopener">OpenSea</a> and <a href="https://solanalysis.com" target="_blank" rel="noreferrer noopener">Solanalysis</a> of some of the top Solana and Ethereum projects can be found below:</p>



<div class="wp-block-image"><figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="401" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.00-PM-1024x401.png" alt="" class="wp-image-13195" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.00-PM-1024x401.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.00-PM-1024x401.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.00-PM-1024x401.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.00-PM-1024x401.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.00-PM-1024x401.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.00-PM-1024x401.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.00-PM-1024x401.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.00-PM-1024x401.png?w=1227 1227w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Ethereum Projects</figcaption></figure></div>



<div class="wp-block-image"><figure class="aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="338" src="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.08-PM-1024x338.png" alt="" class="wp-image-13196" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.08-PM-1024x338.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.08-PM-1024x338.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.08-PM-1024x338.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.08-PM-1024x338.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.08-PM-1024x338.png?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.08-PM-1024x338.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.08-PM-1024x338.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2021/12/Screen-Shot-2021-12-27-at-4.56.08-PM-1024x338.png?w=1247 1247w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>Top Solana Projects </figcaption></figure></div>



<p>If you made it this far, thanks for reading! I am looking forward to catching up tomorrow.</p>



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