Crypto Weekly: Rebounding from a setback Crypto Weekly: Rebounding from a setback Crypto Weekly: Rebounding from a setback

Crypto Weekly: Rebounding from a setback

Mads Eberhardt

Cryptocurrency Analyst

Summary:  The crypto market has been on a two-week-long rebound with Bitcoin now trading at its year open and Ethereum nearing its open. The surge has likely been caused by an increased risk appetite and positive regulatory development. However, the global unrest, particularly the invasion of Ukraine, can quickly turn things around. Speaking of Ukraine, the country is about to launch a non-fungible tokens (NFTs) series.

Rebounding to this year’s open

Since December last year, the crypto market has to a large degree been driven by the same events as the equity market, particularly technology and growth stocks. In our view, there has been a general altered sentiment on notably more risky assets, such as technology stocks and cryptocurrencies, where investors have substituted a part of their high-risk assets with less risky assets, leading to a tumbling crypto market from its all-time high total market capitalization back in November. Further, upon the increased global unrest - particularly fueled by the invasion of Ukraine - cryptocurrencies do not seem to be the safe haven as hoped by those in the crypto community who called Bitcoin a digital analogy to gold. Instead, the crypto market has performed poorly in times of increased global unrest.

Because the broader market risk sentiment and the global uncertainties have arguably firmly impacted the crypto market lately, these topics should reasonably be top of mind for investors looking at short-term moves in the crypto market. Since mid-March, many growth stocks have partially recovered from their setbacks. Ark Innovation ETF is, for instance, up from a low of $52.5 in mid-March to a present price of $64.50. This emphasizes that the former risk appetite of the market is somewhat returning. For now, the crypto market seems to benefit, with Bitcoin having returned to its year open price, while Ethereum is still closing in. However, whether this rising risk appetite is sustainable more long-term largely depends on the global unrest namely the invasion of Ukraine, and which consequences it will have long-term.

With respect to uncertainties but this time exclusive to the crypto market, particularly over the past month, the market has been gifted with positive progress within the regulatory arena. With the latter being one of the greatest uncertainties within crypto, regulatory clarity is essential for the space to evolve further. Earlier in March, US President Biden signed an executive order to explore the regulation of cryptocurrencies. The order was, however, rather positive, as it focused a lot on supporting innovation. Some days after, the European Union parliament voted on a proposed rule that would fundamentally ban cryptocurrencies using the proof-of-work consensus protocol used in Bitcoin and for now, Ethereum due to environmental concerns. The EU parliament voted 30-23 in favor of rejecting the rule. US Treasury Secretary and former Chair of the Federal Reserve Janet Yellen commented last week on crypto: "I have a little bit of skepticism because I think there are valid concerns about it. Some have to do with financial stability, consumer/investor protection, use for illicit transactions, and other things. On the other hand, there are benefits from crypto, and we recognize that innovation in the payment system can be a healthy thing." The latter is truly interesting, as Yellen has been vastly skeptical about crypto. It may call for a more positive future view on crypto by Yellen.

The government of Ukraine to launch non-fungible tokens (NFTs)

Shortly after the invasion of Ukraine in late February, the Ukrainian government publicly asked for donations in Bitcoin, Ether, and other Ethereum-based tokens such as the stablecoin USDT to fund its defense. Disclosed last week, on the 30th of March, the Ukrainian government will launch a non-fungible tokens (NFTs) series. On the face of it, the series will consist of 54 NFTs, individually portraying key moments in the early days of the invasion between the 24th to the 26th of February. The Ukrainian government states in the NFT series; “We will never let any single day of this period disappear from the ledger of world history.” The funds in full raised from the NFT sale will go to the official crypto account of the Ministry of Digital Transformation of Ukraine to financially support the country.

Bitcoin/USD - Source: Saxo Group
Ethereum/USD - Source: Saxo Group
Ark Innovation ETF - Source: Saxo Group


The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (
Full disclaimer (

Saxo Bank (Schweiz) AG
The Circle 38

Contact Saxo

Select region


All trading carries risk. Losses can exceed deposits on margin products. You should consider whether you understand how our products work and whether you can afford to take the high risk of losing your money. To help you understand the risks involved we have put together a general Risk Warning series of Key Information Documents (KIDs) highlighting the risks and rewards related to each product. The KIDs can be accessed within the trading platform. Please note that the full prospectus can be obtained free of charge from Saxo Bank (Switzerland) ltd. or the issuer.

This website can be accessed worldwide however the information on the website is related to Saxo Bank (Switzerland) Ltd. All clients will directly engage with Saxo Bank (Switzerland) Ltd. and all client agreements will be entered into with Saxo Bank (Switzerland) Ltd. and thus governed by Swiss Law.

The content of this website represents marketing material and has not been notified or submitted to any supervisory authority.

If you contact Saxo Bank (Switzerland) Ltd. or visit this website, you acknowledge and agree that any data that you transmit to Saxo Bank (Switzerland) Ltd., either through this website, by telephone or by any other means of communication (e.g. e-mail), may be collected or recorded and transferred to other Saxo Bank Group companies or third parties in Switzerland or abroad and may be stored or otherwise processed by them or Saxo Bank (Switzerland) Ltd. You release Saxo Bank (Switzerland) Ltd. from its obligations under Swiss banking and securities dealer secrecies and, to the extent permitted by law, data protection laws as well as other laws and obligations to protect privacy. Saxo Bank (Switzerland) Ltd. has implemented appropriate technical and organizational measures to protect data from unauthorized processing and disclosure and applies appropriate safeguards to guarantee adequate protection of such data.

Apple, iPad and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries. App Store is a service mark of Apple Inc.