Author: Michelle Lazo

Bitcoin Depot, the largest Bitcoin ATM operator in the United States, has demonstrated remarkable resilience in its revenues despite the volatile nature of cryptocurrency prices.

According to its recently filed 10-K annual report on April 15, the company disclosed revenues of $689 million in 2023 and $647 million in 2022, indicating a strong performance unaffected by Bitcoin’s price fluctuations.

Bitcoin Depot’s Robust Revenue Amid Market Volatility

Despite the tumultuous movements in cryptocurrency prices, Bitcoin Depot has maintained steady revenue growth, showcasing its stability amidst market turbulence. Even during periods of extreme volatility in Bitcoin prices, the company’s revenues remained resilient and unaffected. For example, despite Bitcoin’s 155% surge in 2023, Bitcoin Depot’s revenue growth was a modest 6% year-over-year.

This resilience is attributed to Bitcoin Depot’s strategic focus on non-speculative services such as money transfers, international remittances, and online purchases. Unlike entities heavily involved in cryptocurrency trading or mining, Bitcoin Depot maintains a relatively low balance of Bitcoin, typically less than $1 million, at any given time.

Additionally, the company minimizes its exposure to Bitcoin’s volatility by purchasing Bitcoin through reputable liquidity providers like Cumberland DRW or Abra, rather than engaging in mining activities. This proactive approach to risk management sets Bitcoin Depot apart from its competitors and ensures effective management of principal risk.

Bitcoin Depot’s operational model involves maintaining Bitcoin balances to fulfill user demand from kiosk or BDCheckout transactions, rather than acting as an agent or exchange for users. As users receive Bitcoin, the company replenishes its balance through purchases from leading liquidity providers, ensuring smooth operations and stability.

Furthermore, Bitcoin Depot’s success extends globally, as it leads the Bitcoin ATM market with a network of over 7,000 BTMs worldwide. Despite a decline in Bitcoin ATM installations globally in 2023, Bitcoin Depot remains optimistic about the industry’s future, anticipating a rebound following the upcoming Bitcoin halving event.

Bitcoin Depot’s CEO, Brandon Mintz, remains confident in the industry’s prospects, expecting increased market activity and interest in cryptocurrencies post-halving.

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Renowned Bitcoin critic Peter Schiff recently forecasted a potential downturn in BTC’s price to $20K, accompanied by a caution about MicroStrategy’s holdings. Schiff emphasized the significance of Bitcoin’s $60K support level, hinting at a possible “triple top” pattern.

Expressing concerns, Schiff suggested that a dip below the $60K mark might trigger a substantial decline, potentially leading to a significant drop to $20K. He also underscored the potential impact on MicroStrategy, the largest corporate holder of Bitcoin, which could face an estimated $2.7 billion unrealized loss if prices plummet.

MicroStrategy currently holds approximately 214,000 BTC, acquired at an average price of $34K. Despite potential losses during bearish markets, CEO Michael Saylor remains bullish on Bitcoin, advocating for a long-term investment strategy.

This isn’t the first time Schiff has targeted MicroStrategy over crypto market uncertainties. In March, he criticized the company’s $623 million BTC acquisition, warning of potential losses at a $20K Bitcoin price.

However, Schiff’s projections of a $20K price seem unlikely based on current market trends and technical analysis. Bitcoin’s 50-day and 200-day Exponential Moving Averages could offer significant support at $63,128 and $47,900, respectively. A sustained level above these EMAs might negate Schiff’s forecast.

Despite Schiff’s consistent skepticism, Bitcoin has defied previous doomsday predictions. The recent projection coincided with geopolitical tensions, but historical parallels and market rebound trends suggest a potential recovery.

Critics within the crypto community, like Stephan Livera, dismiss Schiff’s analysis as lacking substance and relevance, highlighting ongoing debates around Bitcoin’s future trajectory amidst varying viewpoints.

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Despite recent sell-offs across the digital assets market, Bitcoin has displayed remarkable resilience, maintaining a dominance metric of 55.3%, its highest level since April 2021, according to a note from Matteo Greco, a research analyst at digital asset investment firm Fineqia International.

Greco highlighted that Bitcoin’s market cap dominance has reached a three-year high despite market volatility, with trading volumes remaining robust. BTC Spot ETFs recorded a weekly trading volume of approximately $16.2 billion, with an average daily volume of around $3.2 billion. Since inception, cumulative trading volume stands at approximately $212 billion, with an average daily volume of roughly $3.3 billion.

Bitcoin Sees Weekly Decline

Ending the week at around $65,650, Bitcoin experienced a 5.3% decline from the previous week’s closing value of around $69,350. The week saw significant volatility, particularly during the weekend, following a period of relative stability from Monday to Thursday.

On Friday, Bitcoin faced a downturn, dropping to a low of $65,100. The negative trend continued into Saturday, hitting a weekly low of approximately $60,650 before rebounding and concluding the week around $65,650.

Geopolitical tensions in the Middle East were cited as the cause of the weekend’s price drop. However, market sentiment improved after an announcement of a temporary halt in hostilities among the involved nations. Additionally, attention was drawn to the upcoming halving scheduled for the night between April 19th and 20th, which historically triggers short-term “sell the news” reactions.

US Inflation Data Surpasses Expectations

Recent US inflation data surpassed expectations, leading to a revision in market participants’ rate cut projections for 2024. Initial expectations included a reduction of at least 75 basis points in interest rates. However, the latest data has shifted projections to anticipate 25/50 basis points cuts during the year, with the first cut expected in Q3 and a potential second cut towards year-end.

Greco highlighted that the continued presence of inflation levels surpassing central banks’ targets might result in a prolonged period of tighter monetary policy, contributing to short-term challenges faced by risk-on assets as investors realign their portfolios.

Digital asset investment products witnessed minor outflows amounting to $126 million in the past week, with Bitcoin experiencing outflows of $110 million but maintaining positive inflows of $555 million month-to-date. Short-bitcoin, which had been witnessing outflows for the past three weeks, saw minor inflows of $1.7 million, likely capitalizing on the recent price weakness.

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