top of page

Bitcoin Not Moved in Over 12 Months Reaches All-Time-High

GB Market Commentary 25/04/2022

by Marcus Sotiriou


The crypto markets tumbled this morning, as Bitcoin fails to hold the $40k level. Fears about a 50-basis point rate hike have strengthened after Federal Reserve Chairman Jerome Powell’s comments last Thursday. He stated, “it is appropriate in my view to be moving a little more quickly”, which is a key change in direction of the Federal Reserve’s strategy – instead of raising rates steadily at 25 basis points this year, he said how the FOMC are more willing to raise interest rates quicker and reach the 2-2.5% target at a faster pace. This means that a 50-basis point rate hike is very likely at the next FOMC meeting on May 3rd-4th. It is clear that the Federal Reserve has taken this aggressive stance due to consumers in the US are still spending substantially, which comes as a surprise after the Russia-Ukraine war. I think that even though we have a more hawkish Federal Reserve which could lead to more pain for global markets in the short term, I am still cautiously bullish. This is because the market was already expecting a 50-basis point rate hike before Jerome Powell’s announcement last week, so this news has already been priced into a large extent. This could lead to a buy-the-fact event on the day of the FOMC meeting on 3rd-4th May.


Bitcoin: Percent of Supply Last Active 1+ Years Ago - 25/04/22

Despite the hawkish Federal Reserve, Bitcoin’s on-chain metrics are contrastingly bullish. Data from Glassnode shows that the percentage of Bitcoin’s supply that has not moved in 1 year is at an all-time-high. I think this data tells us that whilst these macro headwinds are ongoing, Bitcoin is being distributed from those who see it as a risk-on asset, to long-term holders who have strong conviction in Bitcoin’s long-term potential.

Comments


GB_CC_May_Digital Asset Trading_Whiteout
  • LinkedIn
  • Twitter
  • Facebook
  • Instagram
  • YouTube
  • telegram logo

GlobalBlock EU ApS is a company incorporated and registered in accordance with the applicable laws of the Kingdom of Denmark as virtual asset service provider, with registration number (CVR-number) 45126382. GlobalBlock EU ApS is wholly owned by GlobalBlock Holdings., a company registered in England and Wales with registration number 15929099 . GlobalBlock EU ApS is not a licensed financial services provider and is not supervised as such by the Danish Financial Supervisory Authority. GlobalBlock EU ApS is supervised with respect to anti money laundering by the Danish Financial Supervisory Authority within the scope of the Danish Act on Prevention of Money Laundering and Terrorist Financing and other legislation stemming thereof.

.
GlobalBlock Europe, UAB is a company incorporated and registered in accordance with the applicable laws of the Republic of Lithuania as a virtual currency depository wallet operator and virtual currency exchange operator, with registration number 306045642. GlobalBlock Europe, UAB is wholly owned by GlobalBlock Holdings Ltd., a company registered in England and Wales with registration number 15929099,  GlobalBlock Europe, UAB is not a licensed financial services provider and is not supervised by the Bank of Lithuania. GlobalBlock Europe, UAB is supervised by the Financial Crime Investigation Service under the Ministry of Interior of the Republic of Lithuania within the scope of the Law on Prevention of Money Laundering and Terrorist Financing of the Republic of Lithuania and other legislation stemming thereof.
 
Investors should be aware that cryptocurrencies are volatile investment instruments that carry a high degree of risk to the capital investment. The information in this website is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments or participate in any specific investment (or other) strategy. The products and services outlined on this website may not be suitable for all types of investors. The value of an investment can go down as well as up, and you may not get back the amount you originally invested. You should not invest more than you can afford to lose and should ensure that you fully understand the risks involved. Before trading, please take into consideration your level of experience, investment objectives, and seek independent financial advice if necessary. It is your responsibility to ascertain whether you are permitted to use the services of GlobalBlock Europe, UAB based on the legal requirements in your country of residence. The information in this website is for information purposes only and is subject to change. No part of this website can be reproduced without written permission.


 Client fiat is held with GlobalBlock in accounts with BCB Limited,and does not meet the definition of Electronic Money (e-money). Client fiat and cryptocurrency are not “safeguarded” nor covered by any compensation scheme. Clients could potentially lose their cryptocurrency or fiat if something were to happen to GlobalBlock or, BCB.

Cryptoasset Notice

Cryptoasset services are provided by GlobalBlock Europe, UAB (“GlobalBlock”).   Cryptoassets are not regulated in any jurisdiction and the value of your assets can increase or decrease. You should note that your cryptoasset profits may be subject to Capital Gains Tax.

The service you obtain through the website or the app in the UK, contains cryptoasrvices not regulated by the Financial Conduct Authority. Please be aware that:

  • You will have no recourse to the Financial Ombudsman Service in the event of a complaint relating to cryptoasset services.

  • Your cryptoasset account is not protected by the Financial Services Compensation Scheme.

  • Cryptoassets may experience frequent price volatility resulting in a high degree of risk.

bottom of page