Bitazza Crypto Weekly: Russia and Ukraine Pivot On Stance Towards Bitcoin -

Crypto Weekly: 21 – 27 February 2022

Verkhovna Rada, the Ukrainian parliament, has approved amendments to their legislature that seeks to overhaul the regulatory body for cryptocurrency oversight amidst rising geopolitical tensions with Russia. The amendment is largely considered to be a positive sign for crypto adoption within Ukraine and has seen support from 272 out of 365 deputies within the Ukrainian government.

Similarly, the Russian government may be softening its stance towards crypto. The country’s Ministry of Economic Development has greenlit proposals to allow crypto mining operations in areas with a sustainable surplus in electricity generation. The proposal aims to recognize crypto mining as a commercial activity and introduce taxes on its realized profits. Recent support for crypto regulations within the country is growing, with statements from notable figures such as President Vladimir Putin, which directly opposes the Central Bank’s decision to ban cryptocurrency outright.

The support for Bitcoin from both countries during their conflict could potentially suggest that Bitcoin is seen as a safe asset to hedge with during this period of uncertainty for Russia’s and Ukraine’s respective fiat currencies. It would also allow both countries to further distance themselves from the US Dollar, one of the key features that proponents of Bitcoin and decentralization frequently tout.

Data from blockchain data and intelligence provider Glassnode reveals that the supply of Bitcoin on exchanges is at a 3-year low. Meanwhile, data from on-chain market behavior analytics platform Santiment indicates that the number of active Bitcoin addresses has hit a yearly high at 1.08 million recently, potentially a positive sign for Bitcoin prices moving forward.

Interestingly, in a report to investors titled “Cryptocurrency 201: What Is Ethereum?”, prominent investment bank Morgan Stanley warns their clients that Ethereum may lose its dominance to competing Smart Contract platforms. Predictably, the report cites the Ethereum network’s high transaction fees and volatility as the primary reason why the network is losing ground to its competitors. The report specifically mentions BSC, Solana, and Cardano as platforms that are either faster, cheaper, or more scalable than Ethereum.

Twitter is expanding its support for cryptocurrency, adding Ethereum tipping as an option to allow users to tip each other in ETH in addition to BTC on their platform. Currently, the feature is only available to Twitter mobile application users.

Big Four bank J.P. Morgan (JPM) has officially entered the metaverse, launching their Onyx Lounge on Decentraland. JPM appears to be bullish on the virtual world and could be exploring more opportunities to expand its services into the broader metaverse.

The New York Stock Exchange (NYSE) has filed a trademark application with the United States Patent and Trademark office to offer digital currency and NFT trading services in the metaverse. The potential entry of the largest global stock exchange into the metaverse could have enormous ramifications for Web3, the metaverse, and the crypto industry as a whole.

Weekly Technical Analysis: 21 – 27 February 2022

Bitcoin (BTC)

After falling through the $39,000 support level, BTC has lost its short-term uptrend. So long as the new support at $36,000 can remain intact, BTC will likely trend sideways in the short term. BTC will have to break through resistance at the $45,000 level to signal an uptrend.

Ethereum (ETH)

ETH faced a significant sell-off over the past week and is trending sideways. However, ETH’s trend could quickly turn bearish if the support at $2,480 cannot remain intact this week. ETH will look to challenge resistance at the $3,000 level to enter an uptrend again.

Band Protocol (BAND)

BAND is up by 11.2% from l.ast week, but its overall trend is still sideways until it can break through the 160 Baht resistance level. On the other hand, if support at 130 Baht cannot remain intact, we may see a bearish reversal for the cross-chain oracle token.

Avalanche (AVAX)

AVAX is up by 4.4% from last week; however, this was not enough to maintain the short-term uptrend, with AVAX signaling a sideways trend at the moment. Support at 2,500 Baht will have to remain intact this week if AVAX wants to avoid a bearish move. In contrast, if AVAX can successfully challenge resistance at the 3,200 Baht level, it may return to an uptrend again.

Trading and Investment Considerations For The Week

Increasing tensions between Russia and Ukraine drive the gold price with investors looking to gold as a safe haven during the crisis. Bitcoin prices have failed to improve during this time.

While geopolitical factors may be impossible to control, investors and traders are advised to practice appropriate portfolio and risk management during this period, where the market may prove to be volatile.

Another factor to watch is Federal Reserve chief Jerome Powell’s upcoming speech on policy updates to the US Congress on March 2 and 3.

If the conflict between Russia and Ukraine continues, the FED may have to delay or alter plans to enact stricter monetary policies. This would likely benefit markets.

Similarly, if Russia and Ukraine officially recognize Bitcoin in their legislature, Bitcoin’s long-term fundamentals would likely improve as well.

*Materials on Bitazza Weekly Newsletter are intended to be used and must be used for informational purposes only. The views, information, or opinions expressed are solely those of the individuals involved and do not necessarily represent those of Bitazza and its employees. The information contained herein is not intended to be a source of advice or financial analysis with respect to the material presented, and the information and/or documents contained in this website do not constitute investment advice.

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