top of page

Bitcoin Bounces from $33,000 as Rothschild Investment Add to Their Bitcoin Holdings

Updated: Feb 18, 2022

GB Market Commentary 25/01/2022

by Marcus Sotiriou


Bitcoin finally showed strength yesterday as it bounced from a weekly demand area in the low $30,000 region. The US stock market capitulated, with the Nasdaq down more than 4% at the low of the day, before mounting an incredible comeback to finish the day green.


It appears that market participants have been protecting themselves ahead of tomorrow’s FOMC meeting, where Jerome Powell will give more clarity on monetary policy, as well as being cautious due to uncertainty with warfare between Russia and Ukraine. Risk assets should see a meaningful bounce when protective positions unwind, which could occur after tomorrow’s FOMC meeting if Jerome Powell confirms that the first rate-hike will be in March. However, equities and crypto may experience further downside if the Federal Reserve choose to hike rates sooner than March.

Coins moving to and from Whale Holders - 25/01/22

Whilst sentiment has been extremely bearish within the crypto market, Bitcoin’s strength relative to the stock market was telling yesterday, with noticeable bidding on Coinbase. Could this be a sign of institutions re-entering the market? I think likely, as these large corrections typically result in the transfer of wealth from ‘weak hands’ (short-term holders) to ‘strong hands’ (long- term holders). Data presented by on-chain analyst Willy Woo further suggests that institutional money may be coming back into the market, as coins are shown to be moving back to whale holders.


Rothschild Investment is an example of a major financial institution who has bought during this downturn, as they bought another 93,521 shares of Grayscale Bitcoin Trust (a fund making it easier for traditional investors to gain exposure to Bitcoin) totalling their holdings to 232,311 shares.


However, we cannot be confident that the bottom is in, as data from CryptoQuant shows exchange inflows spiking over the past few days. This could be in anticipation of tomorrow’s FOMC meeting, as people may be getting ready to sell in case Jerome Powell’s stance is more hawkish than expected.

BTC Price - 25/01/22

Commentaires


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