09.02.2022A bouquet of positive news for the cryptos – BTC has worked its way up out of its downward channel. We shed light on the interesting chart technique. And we analyse the bullish news of the past few days.


As you can easily see, Bitcoin has worked its way back up from the downward channel it has been in since November. Now BTC is knocking on the red 50-day line at just under 44,000 dollars. This resistance had better fall quickly. On the positive side for the bulls, the large chart gap from July 2021 was closed with the recent pullback to just under $33,000. However, a small gap has formed again in recent days, reaching to around 41,000. It is quite possible that the market will close this gap for the time being. Let’s now take a look at the latest news.

Source: Bernstein Bank GmbH


Payment on Block

First, Bitcoin Magazine reported a push factor from Jack Dorsey, ex-head of Twitter and current ruler of the payment platform Block. According to this, his users of the Cash app will be able to make free bitcoin payments via the Lighting network in the future. This is made possible by the Lightning Development Kit (LDK), a software application for developers. We think: More companies are likely to follow. By the way, Dorsey predicted that Bitcoin will replace the dollar by the end of 2021. We are curious.

Moscow points out payment system to China

The always bullish “Bitcoin Magazine” made another interesting assumption from the crypto world. According to this, the Russian-Chinese closing of ranks for the opening of the Winter Olympics could also mean that both superpowers will rely more on e-currencies in the future to circumvent sanctions by the West. Moscow could be kicked out of the SWIFT payment system by the West if it invades Ukraine.

In a letter to the Chinese people, Russia’s President Vladimir Putin explicitly referred to a joint agreement on payment processing dating back to 2019. Further, Putin assured that his country will support China in energy production – a big issue for mining cryptos. We think: It is quite conceivable that Moscow and Beijing will switch to Bitcoin, Ether and co. in the event of sanctions. But only as long as they do not have their own state-controlled cyber currencies.

Tesla and KPMB rely on cryptos

That leaves a newsflash from Tesla: the e-car pioneer is firmly committed to Bitcoin. The company has now accumulated tokens worth around 2 billion on its balance sheet. Ergo, Tesla has not sold anything, which many had feared. This was joined by news from Canada: the auditor there, KPMG, announced that it had invested in Bitcoin and Ether; however, the company did not give any details about the amount.

Bitcoin loot confiscated

Last but not least, let’s move on to a factor that is not yet clear whether it supports the bulls or the bears. The US Department of Justice just reported the largest financial seizure ever – according to the report, the FBI confiscated the loot from a hack against crypto platform Bitfinex from August 2016. The criminals turned part of the stolen goods of 120,000 tokens into cash; however, 94,000 tokens are still said to be left. You can imagine what the state is doing with them: selling them.

Unfortunately, it is unclear when the e-currencies were confiscated and what happened or is supposed to happen to them. Since the thieving couple was arrested in Manhattan this Monday, it seems that the access to the e-accounts has just run its course. If the tokens are thrown on the market shortly, a new torture for BTC cops will begin. However, if the loot has already been hawked, or if it is not thrown on the market at all, a major drag on BTC would disappear from the market. Bernstein Bank is keeping an eye on developments for you – we wish you successful trades and investments!


Important Notes on This Publication:

The content of this publication is for general information purposes only. In this context, it is neither an individual investment recommendation or advice nor an offer to purchase or sell securities or other financial products. The content in question and all the information contained therein do not in any way replace individual investor- or investment-oriented advice. No reliable forecast or indication for the future is possible with respect to any presentation or information on the present or past performance of the relevant underlying assets. All information and data presented in this publication are based on reliable sources. However, Bernstein Bank does not guarantee that the information and data contained in this publication is up-to-date, correct and complete. Securities traded on the financial markets are subject to price fluctuations. A contract for difference (CFD) is also a financial instrument with leverage effect. Against this backdrop, CFD trading involves a high risk up to the point of total loss and may not be suitable for all investors. Therefore, make sure that you have fully understood all the correlating risks. If necessary, ask for independent advice. CFDs are complex instruments and are associated with the high risk of losing money quickly because of the leverage effect. 83% of retail investor accounts lose money trading CFD with this provider. You should consider whether you understand how CFD work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.