Blockware Intelligence Newsletter: Week 212
Bitcoin on-chain analysis, mining analysis, macro analysis; overview of 5/18/26 - 5/22/26
For a limited time, Blockware is offering a discounted electricity rate for all Bitcoin miners purchased through the Blockware Marketplace. Our typical power rate of $0.075/kWh has been lowered to $0.070/kWh for all miners purchased before the end of day next Friday, May 29th.
For a miner with 10 machines, that’s over $1,600 per year in electricity savings.
If you’ve been looking for a sign to jump into machines, this is it.
All miners purchased can be deducted fully in year-1 under section 168(k). This means for every $1 spent on miners, you can offset $1 of active income. Sign up for a consultation with a member of the Blockware team to learn more: https://blockwaresolutions.com/info
Bitcoin is holding strong at the short-term holder cost basis during this recent pullback. “Sell the rip” switching to “buy the dip” is a good sign that Bitcoin likely continues to trek higher from here in the short / medium term.
The chart below visualizes “buy the dip” behavior using the help of on-chain data. Addresses containing 0.01 to 1 BTC hold a combined ~1.33 million BTC. As a cohort, they’re by no means a major player when it comes to the market as a whole. However, prices are set at the margin, which means a slight shift in supply/demand dynamics can cause a change in price action; especially during times like now when trading volume & overall market activity is low.
This cohort, for the most part, is constantly accumulating. However, they’ve historically accumulated with larger size during Bitcoin bottoms. Note the spike in holdings in early February as BTC touched $60,000. We’re seeing a similar behavior now:
BTC Dips
Hardcore Holders Aggressively Buy the Dip
The situation in the treasury market is becoming increasingly more bleak as time goes on. The 30-Year Treasury Yield has reached ~5.08%, it’s highest level since 2007. Rising rates are going to increase pressure throughout the economy as borrowing costs rise for everyone; from those drowning in credit card debt, to new families taking out a mortgage, to the United States Government itself.
Oil prices remaining elevated puts the administration in a two-front battle: rising yields and rising prices. These battles cannot be fought simultaneously for a prolonged time without sever consequences towards the economy. Something has to give, that something will likely be a lower Fed funds rate and more quantitative easing.
Interestingly, gold has not followed long-end treasury yields higher on this latest move higher. Rising yields in Q4 2025 & Q1 2026 were accompanied by a “flight to safety” in gold; a non-sovereign store of value that hedges against over-indebted governments. However, that’s not been the response from gold as of late. This is a sign that, despite the uncertainties in the macro landscape, the market is risk-on.
A risk-on bid for a non-sovereign store of value will result in more capital inflows for Bitcoin.
When looking at the BTC/Gold chart, it is even more evident that a bottom has been formed. Based on the current Gold price of ~$4,500/ounce, a return to the all-time high of 38 gold ounces per 1 Bitcoin implies a BTC price of ~$171,000.
