STACKING SATS: #Bitcoin accumulation hits fresh highs // ALTSEASON: Altcoins growing faster than #BTC or #ETH // MORE TIME: FinCEN extends #crypto wallet consultation // YELLEN: #Biden’s pick calls out #cryptocurrency // OCC: US bank chief Brooks leaves office
Bitcoin long-term bullish accumulation continues [20 Jan 2021]
According to on-chain intelligence firm Glassnode, the amount of Bitcoin held in accumulation addresses now exceeds 2.7m BTC. That’s a 17% increase in a single year. Accumulation addresses are addresses (excluding miner and exchange addresses) which have only ever received BTC and have never spent them. While the Bitcoin price has seen some correction recently from a high of $42k to $34k, these figures point to long-term bullish price predictions, Glassnode says. Read more here.
Altcoin season is coming [19 Jan 2021]
While most layer-1 blockchains have underperformed BTC and ETH in the bull market, three coins in particular point to outsize altcoin gains. Cardano (ADA), Decred (DCR) and memecoin Dogecoin (DOGE) have each outperformed the two largest cryptocurrencies, while DeFi tokens like Uniswap (UNI), Synthetix (SNX) and Curve (CRV) have all gained more than Bitcoin or Ethereum. All this points to a new ‘altcoin season’ in 2021 where cryptocurrencies outside the top 5 by market cap make spectacular trickle-down gains. Read more here.
Yellen ‘illicit financing’ comments drag down markets [19 Jan 2021]
President Joe Biden’s nomination for Treasury Secretary Janet Yellen made critical comments about cryptocurrency, sparking a sell-off in Bitcoin and Ethereum this week. Investors are watching the new US administration closely for clues as to potential cryptocurrency regulation coming over the horizon. And the former US Federal Reserve chairwoman didn’t hold back, telling a Senate Finance Committee that cryptocurrencies are being used “mainly for illicit financing”. Read more here.
Crypto-friendly OCC head Brooks steps down [13 Jan 2021]
The cryptocurrency-friendly head of the US banking regulator, Brian Brooks, has stepped down to be replaced by Blake Paulson. Brooks, a former legal chief at Coinbase, was responsible for epoch-defining rules in 2020 that include allowing US banks to custody cryptocurrency for their clients, and allowing federally regulated financial institutions to use stablecoins for payments settlement. Now all eyes are on his successor Blake Paulson for an indication of how the United States banking system will treat cryptocurrency in 2021. Read more here.
FinCEN extends controversial crypto wallet AML rule consultation [14 Jan 2021]
Crypto AML advocates have a little breathing space after the US Financial Crimes Enforcement Network extended its controversial wallet rule consultations for a further 15 days. FinCEN sparked fury in the sector after launching the consultation over the New Year period and cutting the length to an unprecedented 15 days. Critics say that FinCEN’s desire to put in place new anti-money laundering rules that force users who want to send cryptocurrency to report the name and physical address of the recipient are unreasonable. Mostly because it is impossible for them to comply, because smart contracts and author-decentralised tools do not have names and addresses to supply. Read more here.