Many in the crypto space were happy to receive the news that such major companies as Tesla or MicroStrategy began pouring their millions into Bitcoin. Well, naturally, this became the driver of the value of the crypto asset, and eventually led to the ATH that the asset reached. Everything would be fine but…
This has led to Bitcoin losing its decentralization. But, we will talk about this next time, and today we are talking about companies that invest in military-technical cooperation. Moreover, several groups are pioneers, and are expanding their positions, as did Rothschild Investment Group.
We have prepared an exhaustive review, which will also help our readers to get a clearer idea of what is happening on BTC.
From America with Love: Bitcoin is Thriving on NASDAQ and NYSE
The United States is certainly a place for companies trading or investing in Bitcoin, although something is starting to happen away from New York. But let’s continue in order.
With over 100,000 BTC, MicroStrategy is a leading Bitcoin trading company. After all, Michael Saylor is one of the most popular and ardent supporters of this cryptocurrency, as well as one of those who personally bought several pieces. The average entry price is slightly higher than the current market price, and the company continued to buy during both bullish and bearish phases.
According to Coinmarketrate.com Tesla was responsible for one of the “bullish” runs of 2021, having bought about $1.5 billion worth of Bitcoin at the then prices. Then, the 10% that the company sold to demonstrate the liquidity of the protocol should be excluded from this calculation. In connection with the new position regarding sustainable development, Tesla has stopped operations with BTC, while continuing to store BTC on its account.
Yes, as you can see, America dominates far and for a long time.
- Galaxy Digital
HODL from a company registered on the stock exchange will not surprise anyone. The group is directly involved in the work of the cryptocurrency market. However, it is a treasure trove of more than 16,400 BTC, which at current prices is worth about 600 million US dollars.
- Voyager Digital LTD
This is the first of the companies in this list whose shares are listed not on the American, but on the Canadian stock exchange. And here the BTC treasury is very interesting, because we are talking about more than 12,000 coins, the value of which is just under $ 500 million.
A company that is engaged, among other things, in Bitcoin mining, and therefore it is quite natural that there should be BTC in its treasury. However, the wallet of this company, whose shares are listed on NASDAQ, plays a very important role. We are talking about 8,133 BTC.
By the way, as for exchanges
Separately, we should focus on the exchanges. One of them, Coinbase, is listed and has more than 4,400 BTC of its own, as well as being in cold storage on behalf of customers. This calculation does not include exchanges such as Binance, as well as Kraken, Crypto.com and Bitfinex.
Miners and Exchanges are among the most greedy for Bitcoin
A significant portion of the BTC currently in circulation may be on these exchanges, with a significant security cushion for transactions that actually occur there.
In the eastern region, there are several groups that store BTC in their vaults.
Although in much smaller volumes, there are other listed companies in the Far East that have significant amounts of Bitcoin on their balance sheets. There is Nexon in Japan, Broker Group in Thailand and Meitu in Hong Kong.
There is also a Net Holding company in Turkey, which, according to the most reliable data, has Bitcoins in its storage. Of course, these are not huge sums, but they indicate interest from a market that is beyond the horizons of us Europeans.
Some invest through Grayscale: in particular, funds
As for funds investing in Bitcoin, a very peculiar situation has arisen in the United States, since the absence of ETFs, until recently, forced them to put themselves at risk from the private Grayscale fund, which physically reproduces BTC.
Among the holders of these assets, we will find such important groups as ARK, among whose leaders there is Katie Wood, who is one of the main supporters of BTC on a global scale.
We also have companies Horizon Kinetics, Simplify, Systelligence, as well as Parkwood and Rothschild Investment Corp, which recently expanded its holdings. It also includes Morgan Stanley, which is known to buy shares of the fund for its clients.
But, while large investors are thinking how much to invest in Bitcoin, it is starting a small recovery, but to start a real uptrend, it needs to quickly overcome the $38,000 mark.
Bitcoin Begins Recovery
After falling below $33,000, according to Coinmarketrate.com , Bitcoin is trying to recover, rising to $37,000. A significant result, but not enough to say whether the asset has escaped from the bear trap.
The year 2022 did not start in the best way for the BTC. Moreover, it went through a difficult period in December, and now it is in the general context of a bear market along with other risky asset classes. Over the year, the S&P 500 index has declined by almost 10%.
From the side of technical analysis, the leading cryptocurrency of the market was forced to defend the $38,000 line, but we saw that it could not stand. Thus, in these conditions, a bottom in the direction of $30,000, and possibly lower, is inevitable.
Why is it so important to get the $38,000 mark
When we look at the last hourly movement of BTC, which brought it below 33,000, we notice that the $38k mark coincides directly with the 0.5 fibonacci. This makes the level a real benchmark for the future trend of the cryptocurrency. Nevertheless, any reliable and sustained breakthrough above this level will raise hopes for a resumption of growth. Conversely, if Bitcoin continues to fall below this bar, a worst-case scenario cannot be ruled out.
As for trend indicators, the hourly Bollinger bands indicate that the asset is overbought, but the price is still above the moving average. This buying trend is confirmed by the RSI as we see it retreating from the high of 68.51.
What if BTC had reached peak sales?
In fact, this is what Bitcoin and other risky assets need to form a real uptrend: a strong sell-off session that will force them to reach the bottom and turn to support. Do we already have such a situation? According to JP Morgan expert Marko Kolanovich, the market is in the last stage of liquidation.
The expert continues that investors’ fear will dissipate with the release of financial results of companies. In a note to investors , he wrote:
“While some fear that rising production resource prices will affect margins, we expect margins to remain high due to high activity and prices exceeding wage inflation.”
On the other hand, French technical analysis expert Vincent Ganne, in his Top Ganne column for Swissquote, believes that the market has not yet reached the level of exhaustion of sales.
Did you know that January is not the best month for Bitcoin?
At the beginning of the year, the price of Bitcoin has already fallen by 26.11% compared to its price on the first of January. But this is not the first time that the cryptocurrency has had a bad start to the year. Looking at the BTC series in the period 2014-2021, we saw that January is historically a month of decline for the BTC.
January Bitcoin Indicators by Year
In the period from 2014 to 2021, the price of Bitcoin in January decreased by an average of 2.80%. Of the 8 years under consideration, only in 2020 and 2021 the asset showed positive growth at the beginning of the year. In 2020, it showed the best monthly result, increasing by 29.96%. Successes that soon faded with the spread of the COVID-19 pandemic in February-March. In January 2021, the price rose against the backdrop of a bull market that began in November 2020. Its monthly productivity was 14.21%.
For the remaining 6 years, Bitcoin has never been able to show positive growth in January. From 2014 to 2019, its price fell by an average of 11.09%. During this period, even when the asset was in a bull market, January always turned out to be bearish. For example, in 2017, BTC fell by 7.90% during January. However, this year the value of the asset will increase by 20 times.
In addition, it should be noted that the worst indicators at the beginning of the year took place in 2018. During this year, the asset price decreased by 27.57%. A drop similar to the one that the cryptocurrency is experiencing this year. Quite an amazing coincidence, considering that in 2017 the asset reached its first peak, close to $20,000, and in 2021 – a higher peak, bringing it closer to $70,000.
If you go back a few steps, when Bitcoin experienced its first bull market in 2013, then the year after the bull market, it also got off to a bad start. In 2014, in January, the price of BTC fell by 5.17% per month.
But February gives hope
If January was not the best month for Bitcoin on the market, then February turned out to be very favorable for the cryptocurrency. Between 2014 and 2021, the BTC price grew by an average of 5.99% every February. When analyzing the series, only in 2014 and 2020 its price decreased. For 2020, this result is explained by a sense of fear in the financial markets, due to the dizzying pace of the spread of the k oronavirus.
After that, the asset always grew during February. And this is even in the year of the bear market. In 2018, during this 29-day period, its price increased by 1.57%. What about February 2022? We’ll wait and see.