top of page

Change In Sentiment Ignites a Bitcoin Bounce

Updated: Feb 21, 2022

GB Market Commentary 23/07/2021 by Marcus Sotiriou


After losing the key support of $30,000 earlier this week, Bitcoin has bounced back, following Musk’s endorsement of the industry at the B word conference on Wednesday. Currently, Bitcoin is testing resistance at the $32,500 level approximately and technically remains in a downtrend, as it is still below every relevant moving average. However, some indicators suggest the market could be due for a short term reversal. The short term holder MVRV shown by Glassnode is showing very low levels (as shown below), indicating that short-term holders are holding coins significantly below their acquisition cost. We can see from the chart that typically this has coincided with market bottoms in a bearish trend.

Bitcoin: Short Term Holder MVRV

In addition, CME’s open interest doubled from $1.25 billion on July 19th to $2.5 billion on July 20th. After an extended period of being net short, CME’s trades are showing that institutions are now positioned slightly net long.

CME Open Interest Up 2x in One Day

There has also been a flood of positive news this week surrounding the industry, some of which discussed below, which could be the start of a change in narrative from the mainstream media. Generally, the sentiment in the market has been very bearish the past few months, shown by the fear and greed index remaining below 25 for the most part. Although, sentiment can change very suddenly in this market. An announcement like a Facebook or Apple Bitcoin purchase could remove a lot of this pessimism. I think the Bitcoin ETF could be the spark to fuel the next BTC rally. So far, Canada and Brazil have approved ETFs and there are now 14 applications for one in the US, after another was announced yesterday from fund management firm Global X. The Gold ETF being launched, as an example, commenced a 7 year bull run with a 400% gain.

J.P. Morgan has become the first major US bank to open cryptocurrency trading to all of their clients. This will be available for any retail customer of the bank, using their wealth management service, expanding its scope beyond its ultra- wealthy clients. Four funds will be included in the offering: Grayscale’s Bitcoin Trust, Bitcoin Cash Trust, Ethereum, Ethereum Classic Trust and Osprey Funds’ Bitcoin Trust. This move from JP Morgan is ironic as the CEO Jamie Dimon has previously touted Bitcoin as a scam and that he would fire any of his employees seen to be owning it. Furthermore, JP Morgan have increased their blockchain related job openings.

BankProv, who are a Massachusetts based crypto friendly bank, announced yesterday that it was launching a payment network for its institutional Crypto customers called ProvXchange. This will enable real time payments to be sent 24/7 between customers and therefore aid the mass adoption of the cryptocurrency industry. The CEO claims they ‘continue to listen to the needs of our community, particularly in the cryptocurrency space, to hear how their businesses can be made more productive using better banking technology’. This reiterates the notion that demand for digital assets continues to soar, as indicated by Goldman Sach’s survey from yesterday’s market commentary. BankProv will be competing with the likes of Silvergate and Signature real-time payments that are available on nights and weekends. Coindesk reported this week that Silvergate customers deposited $4.3bn in digital currency across Q2 this year.

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