This Week In Crypto | 17-24 February

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Dacxi

Mar 1, 2022

5 MIN

Inactive Bitcoin Supply Nears Record as Over 60% of BTC Stays Hoarded

Senior Fed Officials Will Not be Allowed to Trade Crypto, Stocks, And Bonds

Russian Ministry Opens Public Comments Period For Crypto Bill

Low Financial Well-Being of Millennials Leads to Crypto Adoption, Says Report

Twitter Adds Ethereum Support to Send And Receive Tips

 

One more exciting week in the crypto space. We got to know that BTC hoarding is at a record high despite the current drop in prices. Interestingly, Russia takes one more step towards legalizing crypto by opening a period where Russian citizens can share their opinion on laws being discussed. Also, a recent report indicates that millennials are turning to cryptocurrency to improve their financial well-being. The social media giant Twitter, on the other hand, now supports Ethereum for its tipping feature.  Let’s dive into it now.

 

Inactive Bitcoin Supply Nears Record as Over 60% of BTC Stays Hoarded

For more than a year, more than 60% of BTC supply has not left its wallet, according to data from on-chain analytics agency Glassnode. 

As of February 18, 60.61% of the BTC supply has not been used in a transaction for a year or more, regardless of the price volatility of Bitcoin. The percentage is very significant, as only twice before in Bitcoin’s history has the one-year-or-more value reached that level. 

Alistair Milne, an entrepreneur, and investor says that both instances followed a downtrend and preceded a major bounceback in the price of bitcoin. Milne tweeted saying, “There have only been two occasions where 1yr+ HODL'ing of #Bitcoin has been higher (currently 61%). Early 2016, price $380-450 range. Mid-2020, price ~$9000. Both times were during a prolonged consolidation before a huge bull move.”

Because of this, the odds are indicating a different trend for bitcoin in the mid-term, as potential HODL’ers know what is likely coming soon.

 

Senior Fed Officials Will Not be Allowed to Trade Crypto, Stocks, And Bonds

The Federal Open Market Committee (FOMC) has approved new rules that will ban senior officials at the Federal Reserve from buying and holding cryptocurrencies, bonds, agency securities, and other investments. 

“Under the new rules, senior Federal Reserve officials are prohibited from purchasing individual stocks or sector funds; holding investments in individual bonds, agency securities, cryptocurrencies, commodities, or foreign currencies; entering into derivatives contracts, and engaging in short sales or purchasing securities on margin”, said the announcement.

This move comes months after Federal Reserve governors Robert Kaplan and Eric Rosengren left their positions in September last year following controversy over personal trades.

The new rules will take effect on May 1, 2022, under which Federal Reserve officials will have 12 months from when the rules go into effect to dispose of freshly banned holdings. New personnel will be given only six months to do so.

 

Russian Ministry Opens Public Comments Period For Crypto Bill

The Russian Finance Ministry has officially kicked off work on the country’s cryptocurrency regulation bill by accepting public comments on the rules. 

On February 17, the Finance Ministry of the Russian Federation filed two development notices announcing the start of the process of developing a legal framework for work related to transactions with digital currencies.

The first notice, named “On Digital Currency,” provides information about the government launching a public consultation on rules for digital asset transactions and invites proposals from financial market participants, citizens, and legal entities. 

The second notice provides detailed information on a similar process for possible amendments to other federal laws that “On Digital Currency” may require. 

According to the notices issued, the Finance Ministry expects to finalize public consultations for the crypto bill by March 18. Anton Siluanov, the finance minister of Russia, reportedly expects the crypto bill to be passed by the end of 2022.

 

Low Financial Well-Being of Millennials Leads to Crypto Adoption, Says Report

According to a report by business intelligence company Morning Consult, U.S. millennials are seeking alternative financial services such as crypto assets to boost their financial well-being. 

The report titled “The State of Consumer Banking & Payments,” says that millennials are adopting new technologies to assist them in making financial decisions at a better rate than any other generation. 

By December 2021, about 48% of millennial households owned cryptocurrency, which is up from about 30% in June. During the same period, about 20% of all U.S. adults reported owning cryptocurrency.

The report suggests that millennials are using alternative financial services like cryptocurrencies as they have suffered from financial well-being scores that remained “persistently lower than the national average” since June 2021. The global average by December 2021 was 50.98, while the millennial group remained at 49.54.

Finally, the report concludes by saying, “Cryptocurrency will boom in 2022,” mainly due to the adoption of cryptocurrencies and the entrance of younger generations into the crypto market.

 

Twitter Adds Ethereum Support to Send And Receive Tips

Microblogging platform Twitter is adding Ethereum wallet support to help its users tip their favorite creators. This move comes months after it enabled Bitcoin tips in September last year.

“Have you set up Tips on your profile yet so it's easy for people to show their support? Yes: Cool, we’ve added Paga, Barter by Flutterwave, Paytm, and the option to add your Ethereum address,” said Twitter.

A user who is looking to request, receive, or send tips via Tips or anywhere on Twitter must be at least 18 years old. If a user wants to receive tips in ETH, then he/she just needs to enable Twitter’s tipping features and add an Ethereum address to the dedicated section of their profile.

Twitter says that tips can be used to “show support, show appreciation, help out or reward anyone you want – from emerging creators and journalists to Twitter Spaces hosts and more.”