Legacy Banking Consumes Twice As Much Energy As Bitcoin!
Bitcoin is experiencing a correction, triggered off by a series of widely inaccurate Elon Musk tweets. While the damage has already been done, a recent report contextualises bitcoin energy consumption by comparing it to the current legacy financial infrastructure.
While Elon’s tweets provide endless entertainment value, bitcoin is now in a race against time to reclaim key levels before the 23rd of May.
Let’s dig in.
The Banking System Consumes Twice As Much Energy As Bitcoin
According to figures compiled by Galaxy Digital, the yearly energy usage of Bitcoin stands at 114TWh, while the banking industry consumes over 260TWh every year. Michael Novogratz’ crypto firm Galaxy Digital released a report titled “On Bitcoin’s Energy Consumption: A Quantitative Approach to a Subjective Question,” providing open access to its methodology and calculations.
Check out the full article here!
Bitcoin Races Against The Clock
Last week, I drew your attention to a major speculative bubble growing in the crypto space. Since then, the bubble is still going strong despite the recent $500 billion wipe in the last 48 hours. Indeed, Dogecoin still has a whopping $64 billion market cap and is the 6th most popular crypto with nothing aside from a fluffy dog to show for it. Wild altcoin speculation is not a sign of a healthy market.
Meme coins aside, BTC/USD was not immune to the crash, and led the sell off exacerbated by a series of Elon Musk tweets.

At the time of writing, bitcoin trades below the 20-weekly exponential moving average (EMA), and is seemingly on the precipice of confirming a change in trend. However, a lot can happen in 7 days, and bitcoin has not yet closed below this defining bull/bear signal.
In order for bitcoin to retain its mid-erm bullish stance, price must close above $46,600 by Sunday May 23rd. If bitcoin fails to reclaim this level, the probabilities become skewed towards continued consolidation for the coming weeks and months until a bottoming structure suggests otherwise.
Having said that, this is the first time BTC/USD is testing the weekly moving average since the start of the bull market. If history is a guide, ongoing discounts are far from guaranteed when price interacts with this moving average. In previous market cycles, the indicator denoted a near-perfect buying opportunity.
- Weekly reclaim $46,600 suggests continuation of the bull market (last stop before $100,000)
- 4-hour close below $42,800 suggests a move towards $38,000 (identified level of interest)
- Weakness below $35,000 suggests wipe out to $30,000
Sentiment Suggests The Bottom Is Close
At the same time, sentiment indicators suggest that bitcoin might soon be ready to stop bleeding.
The crypto fear and greed index, which samples data from a variety of sources to gauge overall crypto sentiment, has reached levels not seen since April 29th 2020. This is the same level of fear which followed the March 2020 crash (also known as Black Thursday).
Specifically, while bitcoin trades at $44,500, crypto sentiment is in the same ball-park area as when bitcoin exchanged hands below $7,700.
Historically, owning bitcoin when this index shows extreme levels of fear was a wise choice.
Catch you next time.
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Christopher Attard
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Originally published at https://mailchi.mp.