According to recent reports, the United States Securities and Exchange Commission (SEC) intends to propose new regulation changes this week that might have an effect on the kind of services that cryptocurrency businesses are permitted to provide their customers.
According to a report that was published on February 14 by Bloomberg, which cited “people familiar with the matter,” the securities regulator is working on a draft proposal that would make it more difficult for cryptocurrency companies to act as “qualified custodians” on behalf of their customers’ digital assets.
This might, in turn, have an effect on the many hedge funds, private equity companies, and pension funds who collaborate with cryptocurrency startups.
Those individuals who were quoted said that on February 15 a five-person SEC panel would decide on whether or not the plan will advance to the next level.
In order for the remaining members of the SEC to cast an official vote on the proposal, they will need to achieve a majority vote of three votes out of five. If the idea is accepted, it will be revised based on the input provided wherever required.
People who are aware with the situation have said that it is not obvious what particular modifications the United States Financial Watchdog is seeking. This is despite the fact that the SEC has been deliberating on what should be necessary to be a certified custodian of cryptocurrencies since March 2019.
According to Bloomberg, if the deal is confirmed, some cryptocurrency businesses may be required to relocate the digital asset holdings of their customers to another location.
According to the study, these financial institutions may be exposed to “surprise audits” on their custody ties or other ramifications. This information was included in the report.
After a story published on January 26 by Reuters said that the SEC may soon investigate Wall Street financial advisors over how they’ve given cryptocurrency custody to their customers, the news of the vote proposal that will be held on Wednesday comes as a surprise.
The Securities and Exchange Commission (SEC) has been quite busy in recent days dealing with Paxos Trust, the issuer of the Binance USD (BUSD) stablecoin. The SEC is of the opinion that Paxos Trust issued the cryptocurrency in the form of an unregistered security.
Paxos said that they were willing to “vigorously litigate” the matter if it came to it.
According to the most recent Short Interest Reporting dated February 9, the cryptocurrency bank Silvergate Capital Corp. is the second-most shorted company in the United States, with nearly 72.5% of its shares being shorted. This information was gathered from the market on February 9.
The Financial Industry Regulatory Authority (FINRA) is responsible for the collection and publication of short interest positions for all equity securities twice per month. When investors and traders take a short position, it indicates that they anticipate a price decline for a particular asset, such as a share of stock. A short seller is someone who bets that the price of a securities will go down.
At the time of this writing, Silvergate stock (SI) had dropped by more than 87% during the course of the previous year. The latest financial report for Silvergate, as well as the legal fights the business is now engaged in about its ties with the defunct companies FTX and Alameda Research, have contributed to the pessimistic outlook on the stock.
The bank made the announcement on January 17 that the common shareholders would be responsible for a net loss of one billion dollars in the fourth quarter of 2022. According to a report published by the United States Securities and Exchange Commission (SEC), Silvergate experienced significant withdrawals of deposits during the period. As a result, the company was compelled to seek funding from wholesale sources and sell debt securities in order to keep its liquidity.
It has been claimed that Silvergate obtained a loan of $3.6 billion from the Federal Home Loan Banks System in the United States in order to minimize the consequences of a spike in withdrawals that occurred after the closure of the cryptocurrency exchange FTX in November.
The bank is being investigated and sued in the United States for allegedly providing assistance to FTX in its fraudulent operations, which include lending to users and commingling their cash. The corporation is being accused of “furthering FTX’s investment scam,” and stockholders are asserting that Silvergate violated the 1934 Securities Exchange Act. An examination of the bank’s involvement in FTX enterprises is now being carried out by the Justice Department.
According to Silvergate, Alameda signed up for a banking relationship with the institution in 2018, which was before to the release of FTX. According to the company’s statements, proper due diligence was performed at the time and continued monitoring of the issue was also performed.
Recently, in response to the issue at the bank, Moody’s Investors Service downgraded the ratings of Silvergate Capital and its bank to “junk,” with a negative outlook for both entities.
The United States Securities and Exchange Commission (SEC) has begun an investigation into traditional financial advisors on Wall Street to determine whether or not these advisors grant custody of digital assets to their customers without having the necessary qualifications. The purpose of this investigation is to determine whether or not these advisors grant custody of digital assets to their customers.
According to an article that was published by Reuters on January 26, which cited “three sources with knowledge of the matter,” the investigation that is being conducted by the SEC has been ongoing for a few months, but it appears to have picked up speed after the collapse of the cryptocurrency exchange FTX.
According to the sources, the Securities and Exchange Commission (SEC) has never disclosed to the general public the inquiries that it is presently doing since the investigations that it is currently conducting are confidential.
According to a report by Reuters, the majority of the work that the SEC is putting into this investigation is focused on determining whether or not registered investment advisors have complied with the laws and regulations regarding the custody of client cryptocurrency holdings. This is the primary focus of the SEC’s investigation into whether or not registered investment advisors have complied with the laws and regulations regarding the custody of client cryptocurrency holdings. The SEC is conducting an investigation into registered investment advisers to see whether or not they have complied with the rules and regulations that govern the custody of client bitcoin assets. This is the major focus of the inquiry.
To be able to continue to comply with the custodial protections outlined in the Investment Advisers Act of 1940 and to be able to provide custody services to customers, investment advisory firms are required to be “qualified” under the legislation. This qualification is a prerequisite for providing custody services. This regulation is in place to ensure that consumers of investment advice businesses have access to safe and secure custody services.
Data from Cointelegraph Markets Pro and TradingView followed a ranging overnight period for BTC/USD, bulls hoping for clearer validation of recent gains.
After 15% daily gains the day before, Amazon (AMZN) continued its uptrend on Feb. 4, jumping 10% at the open, while embattled Meta (FB) dipped further.
In what has become an increasing focus of attention among analysts, curiously volatile tech stocks thus showed few signs of steadying at the opening bell.
Bitcoin, after losing $800 in the hour beforehand, thus recouped all of those losses and more, underscoring its positive stocks correlation.
“No more posting about stocks, returning to telling you how boring Bitcoin is instead,” Wolf of All Streets Podcast host Scott Melker joked to Twitter followers, revealing that he had bought FB at Feb. 4’s prices.
The overall state of market, however, did not pass him by.
Amazon stock is absolutely pumping after earnings last night.
And it’s pure theater.
Missed on earnings, projecting a 4% downgrade in earnings next quarter.
Raising Prime prices to account for losses.
And that’s “bullish.”
I’m riding wave, but everything is irrational. https://t.co/mHMIm9oeQL
— The Wolf Of All Streets (@scottmelker) February 4, 2022
Melker was not alone, with other commentators even likening the “good-news-is-bad-news” paradox to an episode of The Simpsons.
When it came to BTC, however, popular trader and analyst Pentoshi doubled down on his new, more positive stance on the outlook.
“IMO this larger green area will be a spot where big players buy back + close short positions. Has historical value,” he said about a target area between $31,000 and $36,500.
“Think it’s a tremendous buying opp. I bought 100 $BTC at 37.2 and 400 more yesterday, and will kektinue on spikes down.”
BTC/USD chart with green target zone. Source: Pentoshi/ Twitter
Levels above and below set
Meanwhile, after almost exactly two months of downtrend, Bitcoin is “almost done,” another more bullish analyst believes.
Related: Bitcoin bulls may ignore Friday’s $730M options expiry by saving their energy for $40K
Identifying a zone to reclaim overhead, Twitter account Anbessa urged patience while keeping an eye out for a higher timeframe bull signal to emerge.
#Bitcoin gameplan
Patience payed off, not hodling #altcoins the last weeks & playing each #BTC bounce with solid RM
69 days downtrend almost done, and while I play these LTF bounces, reminder that the reclaim of that level is a HTF bull signal
Patience, Rationality. pic.twitter.com/bFIpFRmTO0
— AN₿ESSA (@Anbessa100) February 4, 2022
As Cointelegraph reported, signals began appearing in late January regarding a possible exit from the multi-month cycle of losses totaling almost 50% from all-time highs.
Investor-focused social media platform Stocktwits, which gained popularity during last year’s ‘retail short squeeze’ frenzy involving GameStop and AMCTheaters, rolled out its own crypto trading services on Thursday.
Stocktwits has partnered with FTX.US to carry out its crypto trading services and is set to launch US equity trading next quarter. The firm further looks to expand its trading services portfolio by offering crypto derivatives trading and other asset classes in the coming months.
Big day here at Stocktwits
We’re excited to share the launch of our fully integrated crypto trading, powered by @FTX_US, right in our iOS app!
Update your iOS app and combine the power of our Community with a best-in-class crypto platform.https://t.co/V0oAyIpaWX
— Stocktwits (@Stocktwits) February 3, 2022
Stocktwits boasts of 6 million registered users and sees 5 million active users monthly. The new crypto trading option would allow users to trade directly from their profile and allow them to showcase their portfolio as well.
The social network platform played a key role along with the subreddit r/wallstreetbets to short squeeze meme stocks in February 2021, leading to billions of dollars in losses for hedge funds who bought millions of short positions against these stocks. The crypto community offered great support during the retail saga and asked several companies associated with it to integrate crypto as a protest against centralized bullying.
Related: New decentralized crypto exchange is inspired by r/Wallstreetbets
The social platform until now was primarily focused on discussions between investors and traders along with other data tools. The CEO of the platform Rishi Khanna acknowledged the growing prominence of crypto discussion on the network and said that the “community and data have served as a strong on-ramp into the platform.”
The launch of the live crypto trading feature would help Stocktwits join the growing list of companies from the short squeeze saga that have integrated crypto-related services. AMC integrated crypto payments for its online booking services while GameStop is entering NFTs and also plans to build new crypto partnerships.
Crypto exchanges are looking for ways to expand their domains, and it seems that the blockchain space is no longer enough. Now, the U.S. subsidiaries of FTX and Bitstamp could be about to start offering their customers support for equity trading.
According to a report from Bloomberg, both exchanges are fine-tuning details to enter the world of traditional finance. If their plans come to fruition, both FTX and Bitstamp would offer services diverse enough for their customers to concentrate a significant amount of their wealth under their custody.
Crypto Meets Stocks
It is unclear whether both platforms want to apply to become stock exchanges or brokers, however it is important to note that although both require a tedious regulatory process, the general consensus is that it is easier to be a broker (like Robinhood) than an exchange (like Nasdaq).
Both FTX and Bitstamp had signaled their interest in penetrating the stock market in the past, so the reports confirm speculation about the business model the exchanges wanted to adopt.
In an interview shared by Bloomberg, Robert Zagotta, CEO of Bitstamp USA indicated that the exchange was interested in offering stock trading options, but his words made it apparent that it was all merely exploratory:
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“(The stock market is a) very competitive space, and there are some very significant players in it; we have to be convinced that we have a right to win in this space.”
He said that should it decide to expand, Bitstamp USA could focus on partnerships or acquisitions to speed up the regulatory process.
For its part, FTX US took a more direct and aggressive approach.
In a tweet on January 11, 2022, FTX US CEO, Brett Harrison, asserted that the stock market was a priority for the company
We’re hard at work on stocks! Features we’re planning for day 1:
What else should we have? pic.twitter.com/q2bTpsfuna
— Brett Harrison (@Brett_FTXUS) January 11, 2022
Tokenized vs Real Stocks
It is important to note that FTX had already played with the stock market, offering its customers the opportunity to trade tokenized stocks on the blockchain representing the price of major SP500 companies. However, regulatory pressure negatively impacted these products.
Other exchanges sidestepped the issue. Binance, for example, offered the opportunity to trade tokenized stocks last year. However, it started with Tesla and withdrew its product three months later due to several warnings from U.S. regulators.
Bloomberg contacted Binance to find out if it expected to enter the stock market, but the exchange said it was focused on the crypto market for the time being.
Coinbase declined to respond, although the company recently acquired a derivatives exchange, so it could be easier for analysts to map its business interests a bit.
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Within months after its launch in April 2021, Bored Ape Yacht Club (BAYC) has become one of the main reasons Wall Street should take the emerging nonfungible token (NFT) market seriously, thanks to its recent sales turnover of over $1 billion.
Celebrities ape into BAYC
For the uninitiated, BAYC is a collection of 10,000 cartoons of anthropomorphic apes with stylish clothes and disreputable expressions. Each ape is practically an image file that should be worthless in a sane world. Nonetheless, they have been managing to fetch astonishing sums, sometimes from some of the world’s most renowned celebrities.
For instance, Jimmy Fallon, a popular American TV host, bought the image of a Bored Ape that wore a striped T-shirt and heart-shaped shades for almost $220,000 in November last year. And very recently, Academy Award-winning rapper Eminem paid nearly $462,000 for an ape that somewhat resembled him.
Eminem’s bored ape, dubbed BAYC #9055. Source: The Guardian
Meanwhile, one of the rarest Bored Apes, which had a gold fur trait, fetched $3.4 million in an online auction held by Sotheby’s in October, breaking the record of another rare ape with laser eyes, which was sold to the Sandbox for $2.9 million a month before.
But what is the selling point?
The BAYC collection fetches its value from NFTs, digital ownership proofs logged on a public blockchain. Think Bitcoin (BTC), but each “coin” is indivisible and unique in some way.
Meanwhile, most NFT projects, including BAYC, settle via the Ethereum blockchain, priced in its native token Ether (ETH).
But rarity is not the only reason people pay millions of dollars for Bored Apes. In addition to owning a unique avatar, people also gain admissions to an exclusive membership club, imposed with tokens. That gives them entry into an inner circle of elites, bringing them status and more profitable opportunities.
APE FEST 2021 details posted in the BAYC Discord:https://t.co/KjYGPhYWCP
☠️⛵️ pic.twitter.com/jvY38qf6NK
— Bored Ape Yacht Club (@BoredApeYC) October 1, 2021
Evan Luthra, the CEO, and founder of EL Group International and a BAYC’s exclusive club member discussed the allure attached to the elite association. The 26-year old angel investor referred to the membership as something that is “very strong for the Wall Street folks.”
“I think there is a new celebrity joining the club every single day.”
Bored Ape collectibles also enable their owners to enter private messaging boards on Discord and gain privileged access to other NFTs.
Bored Ape Yacht Club “floor price”
Bored Ape collectibles also enable their owners to enter private messaging boards on Discord and gain privileged access to other NFTs. And then, there is a certain reselling value attached to these NFTs, as visible in its rising “floor price,” which reflects the lowest bid one may open for the collectibles.
As of Jan.7, the BAYC floor price was 68 ETH, or around $217,800, up 380% from its mid-August low.
BAYC Floor Price chart. Source: CoinGecko
Noelle Acheson, head of market insights at Genesis Trading, credited BAYC for being more flexible in collaborations than CryptoPunks, one of the only high-profile NFT collectible series that came before it.
These collaborations include a BAYC-inspired Adidas gear, the signing of a talent agency, a potential Bored Ape music group, and other related assets emerging around the languid ape characters.
“So, the concept of floor prices — which drives institutional investment in NFTs as well as their increasing use as collateral for loans — no longer depends just on how much investors think someone else will pay further down the road,” Acheson explained, adding:
“Floor prices, and an asset’s appreciation potential, now also depends on what else the NFTs can be used for, other than just displaying.”
Luthra agreed, adding that the continuous involvement of celebrities with BAYC would further boost its recognition among retail and institutional investors alike. That may bring more demand for its NFT collection, which, in turn, would push its floor price higher.
The “Meta” factor
Jelmer Rotteveel, the co-founder of NFT collection MoonwalkerFM, attached one more bullish backstop to the BAYC core valuation: the ongoing hype around Meta, rebranded from Facebook to support the social media giant’s metaverse ambitions.
“With the emergence of Meta we will be entering a new way of communication and business,” he told Cointelegraph, adding that NFTs would become an integral part of the metaverse sector, with users supporting unique digital avatars, such as Bored Apes, to interact with one another digitally.
He added:
“I believe that people will be looking more closely at the developments of NFT projects like BAYC, and, just like you saw with cryptocurrency, they will be stepping in one by one.”
Acheson noted that Facebook/Meta has committed to spending approximately $10 billion on metaverse development, citing its CEO Mark Zuckerberg’s statement that they would look into decentralized metaverse applications.
“Whether we believe him or not — investors are likely to think about getting in ahead of those flows,” she added.
Will Wall Street ape into NFTs?
As stated, BAYC’s net sales recently crossed the $1-billion-mark, almost 10% of what Apple earned in 2021. Meanwhile, the NFT sector, on the whole, processed sales worth $41 billion, which came to be almost equal to the global art sales in the year, data from Chainalysis showed
Matt Hougan, the chief investment officer of Bitwise Asset Management, admitted that many of their clients had been looking for exposure in the NFT space without needing to crisscross through its daunting technology.
In response, Bitwise launched a dedicated fund last mont, which tracks its own Bitwise Blue-Chip NFT Collections Index — a basket of the ten largest NFT collections weighted by market capitalization — and buys and holds artworks from BAYC, CryptoPunks, and other NFT projects.
Related: The NFT world is gradually bridging the gap between niche and mainstream
The “Blue-Chip NFT Index Fund” is available only to institutional investors who invest at least $25,000 into the product.
Returns brought forth by Bitwise’s NFT fund since inception. Source: Bitwise Asset Management
Rebekah Keida, director of marketing at New York-based investment management firm, XBTO, favored the prospects of Including blue-chip NFT projects like BAYC or CryptoPunks into funds on Wall Street.
Keida says that it would open the floodgates for accredited investors to pour thousands, even millions, of dollars into these digital projects.
“The opportunities afforded by the increased capital flow enhances the legitimacy of top NFT projects while allowing investors a diverse bet in crypto,” she told Cointelegraph.
Luthra showed confidence in asset managers’ ability to tail Meta’s foray into the metaverse sector, which, in turn, would benefit the NFT projects like the BAYC, saying:
“If Meta thinks that the future lies in the metaverse and that’s where they are investing their time and energy, it only makes logical sense for asset managers to deploy funds towards the industry. As the space matures and there is more opportunities available, I am confident we will see many more metaverse related funds pop up to capitalize on the opportunity.”
Meanwhile, Sami Chlagou, CEO at Cross the ages metaverse game, compared Meta’s potential involvement in the NFT space with “lighting a lamp in the heads of investors who are much more backward about this concept.”
“Whether you think Meta’s decision is good or bad, the fact remains that when one of the largest social networking groups open to innovation and known for shaking up our environment talks about a subject, it opens doors and the desire to get involved.”
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
On Wednesday, Nasdaq Composite logged its biggest daily loss since February last year. But for one of its listed companies, the day turned out to be extremely bullish.
Blockchain stock soars
The share value of BTCS Inc. (BTCS), a blockchain technology company, surged nearly 44% to $4.36 at the New York closing bell, thus becoming the third-best performer on Nasdaq after Lixte Biotechnology (LIXT) and Mainz Biomed BV (MYNZ).
Top Nasdaq performers as of Jan. 5, 2022’s close. Source: TheStockMarketWatch.com
In contrast, Nasdaq plunged 3.3% Wednesday, its losses driven primarily by the release of the minutes of the Federal Open Market Committee (FOMC) meeting in mid-December last year. In detail, the minutes revealed the Federal Reserve officials’ intention to raise interest rates faster than anticipated.
The Fed scare did not impact BTCS, for it arrived on the same day the company announced “Bividend,” the first-ever dividend payable in Bitcoin (BTC) by a Nasdaq-listed company. Excerpts from their press release published Wednesday:
“BTCS intends to pay $0.05 per share in Bitcoin, based on the Bitcoin price on the ex-dividend date. Investors who do not elect to receive the Bividend in Bitcoin will receive a cash dividend of $0.05.”
Investors/traders took the announcement as a cue to raise their bids for the BTCS stock, insofar that its value per share jumped to $5.05 on Wednesday, a three-week high. However, the stock price later fell by more than 13.50% amid profit-taking sentiment but overall closed the day in profits.
The BTCS correction continues
BTCS dropped by another 8% to $4.01 per share following the New York opening bell on Thursday, this time in sync with Nasdaq, which fell nearly 1%.
BTCS daily price chart. Source: TradingView
The selloff appeared to have accelerated after BTCS tested its 50-day exponential moving average (50-day EMA; the velvet wave in the chart above) near $5.12 as resistance. In a similar fashion, the 20-day EMA (the green wave) attempted to limit BTCS’s downside momentum by acting as support.
Related: Bitcoin price drops to $43.7K after Fed minutes re-confirm plans to hike rates
As BTCS looked rangebound between the two critical moving averages, some financial experts warned investors to not invest in the stock based on hype surrounding its Bitcoin dividend launch.
That included Ivory Johnson, founder of Delancey Wealth Management. The chartered financial consultant recommended that investors buy Bitcoin directly if they want to buy it instead of seeking its exposure via BTCS.
“When buying any stock, your decision should be based on the fundamentals of the company itself,” he told CNBC.
Douglas Boneparth, president of Bone Fide Wealth, called Bividend a “really neat bridge” for institutional investors who want to own Bitcoin. Nonetheless, he noted that BTCS’s offering is more a feature and less a product, underscoring that investors should focus on other factors before buying BTCS shares, such as the company’s future cash flows.
Currently, BTCS is trading nearly 85% lower than its all-time high of $32.40, established earlier in Jan. 2021.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting lows of $48,335 on Bitstamp at Tuesday’s Wall Street open.
The pair had passed $52,000 the previous day, this marking a three-week high, before pressure from sellers halted progress.
At the time of writing, Bitcoin circled $49,000 as traders took the opportunity to remind audiences of Bitcoin’s ongoing active range.
“Humans get bullish at resistance. It’s a thing,” Scott Melker summarized.
“Still ranging. Nothing has changed.”
The $52,000 trip indeed failed to attack any of the price levels previously identified as turning points, notably $53,000 — Bitcoin’s $1 trillion market cap mark.
Popular trader Pentoshi meanwhile identified $44,000 as a potential floor should the downward trend accelerate. Slightly longer timeframes offered a similar outlook based on recent behavior.
BTC 4hr:
Fulcrum around which price has been pivoting.
Bounce or back to the bottom of the channel? pic.twitter.com/BTJR5rN87I
— Nunya Bizniz (@Pladizow) December 28, 2021
Zooming out, however, and there were bearish considerations on the horizon. William Clemente, lead insights analyst at Blockware, identified a potential repeat of behavior immediately after 2017’s old all-time high which led to an entire year of bear market.
“Judgment day is coming for BTC,” he warned in Twitter comments.
Concerns loom over miracle equities readouts
Bitcoin thus presented a contrast to macro Tuesday as the S&P 500 hit its 69th all-time high of the year.
Related: Veteran Bitcoin hodlers are still selling record low amounts of BTC despite 70% gains in 2021
Almost a record in itself, stock market exuberance was already ruffling feathers among pundits concerned about a potential chasm between the numbers and empirical reality.
Just to put things into perspective: The S&P 500 may close today at another ATH, it would be the 69th ATH this year, 2nd most ever only behind 77 ATHs in 1995, but the average S&P 500 comp is down 18% from its ATH, suggesting a massive amount of weakness underneath the surface. pic.twitter.com/3RsPFP1Ajs
— Holger Zschaepitz (@Schuldensuehner) December 27, 2021
The preference towards the use of cryptocurrencies as an investment and store of value continues to maintain a generational gap, with Millennials at the forefront in the use of decentralized technologies – especially millionaire investors.
According to the latest edition of the CNBC Millionaire Survey, the majority of millennial millionaires have invested in cryptocurrencies and expect to increase their holdings in the upcoming months.
Millennials Love Bitcoin
The survey gauges the market sentiment in various areas of the economy. The results show that inflation is the primary concern among millennials, who see the phenomenon as a threat to the growth of the economy. The second most significant risk is, ironically, the US Government Dysfunction. Both share 23% of the total vote.
The survey revealed that 83% of millennial millionaires own cryptocurrencies, with 48% expecting to buy even more in 2022. Only 6% expect to reduce their holdings.
The results also showed that 53% of millennial millionaires own more than 50% of their wealth in cryptocurrencies. At the same time, a third of millenials said they have 75% or more invested in cryptocurrencies.
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As for inflation, most millennials believe it will be a permanent phenomenon, with 45% of millennials showing more significant concern. However, most are optimistic about the future of the economy with an overall 59% confidence in the Fed’s ability to deal with inflation.
Another aspect to note is that millionaires perceive the threat of inflation differently than the majority of the population. Robert Frank, CNBC Wealth Editor, explains that while ordinary people fear the rising prices inherent in inflation, millionaires tend to worry about rising interest rates and how that affects their investments.
Cryptocurrencies And The Generational Breach
The interest of millennials in cryptocurrencies has increased over time. A previous Cryptopotato report showed that millennial investors with 50% of their money Bitcoin accounted for a non-trivial 30% of the total number of respondents in the June issue. The rise towards 53% reveals an increase in interest regardless of prices.
However, it seems that the love for cryptocurrencies is merely a millennial thing. As generations get older, confidence in this asset class declines. A survey covered by Cryptopotato revealed that Xennials, or those around 40-years-old, allocated 9.2% of their funds. In comparison, Generation X’s exposure is approximately 6.3%. Generation X comes before the Millennial Generation.
And among Baby Boomers and earlier generations, the preference for Bitcoin investments is almost minimal, with san average investment of 10% of wealth among the top 10% of the population.
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