Cryptocurrency Market Analysis [April 28 Issue]

Bitcoin price rose from 750,000 yen to 800,000 yen on July 23 after a big increase.

From 750,000 yen to 800,000 yen on July 23

It broke through 800,000 yen after a large rise.

Bitcoin 4-hour chart

In last week's 4-hour chart,

the price moved in a range between 700,000 and 750,000 yen,

fluctuating and converging, and after the convergence

it was noted that the price would move up or down.

On July 23,

the Chinese government began a trial of the digital yuan,

and there was news that

Starbucks and McDonald’s were included,

and Bitcoin’s price reacted and rose.

In terms of price bands, it rose to the next level up.

And the price band has already recovered

to last year’s end levels.

Bitcoin daily chart

The crash, which was also called a financial crisis,

due to this coronavirus ,

Bitcoin briefly dropped below 500,000 yen,

but it soon rebounded and has already recovered to last year’s end levels.

Indeed, cryptocurrencies are smaller in market cap than stocks,

so they tend to be easier to push down,

but this time Bitcoin led the rise and showed influence in financial markets.

[Digital yuan leads and is issued first]

Bitcoin surged on April 23 due to news

that China was entering a test phase to issue the digital yuan first.

In 2019, China announced it would issue the digital yuan by 2020.

However, the damage from coronavirus to China was significant,

so I am personally surprised that they have already entered the testing phase this time.

Regarding the current coronavirus situation,

in Singapore,

movement restriction orders were extended until June 1,6month1day,

and in Malaysia,MCO (Movement Control Order) was extended again until

May12day,and

this movement is expected to continue at least through the end of June.

Considering this, Japan may also extend restrictions.

Back to the topic, China’s digital yuan is being watched by Japan, the United States, and other advanced nations.

These countries already have research teams for digital currencies

and are surely watching how China’s digital yuan will spread in the future.

China’s digital yuan could rapidly spread, focusing on large retailers.

First, it is looking domestically within China, but digital currencies have the potential to spread faster than paper currency due to lower costs and faster adoption.

In such a case, how will it threaten other countries' fiat currencies?

I feel this could be a major economic turning point.

Also, China’s digital yuan is said to be usable offline for payments as well.

Cryptocurrencies use blockchain,

but the digital yuan is not on a blockchain,

as per government statements.

Nevertheless, the government is pushing blockchain as an industrial core, and how this relates to the awareness of cryptocurrencies is drawing attention; hence, on April 23, Bitcoin’s price rose due to news about the digital yuan.

In my view, if the digital yuan becomes widespread, many currency transactions will be monitored.

Particularly among China’s wealthier individuals, there may be a desire to hold assets with systems that cannot be easily intervened by third parties, such as Bitcoin.

Robert Kiyosaki once said, “Bitcoin is the currency of the people,”

and I believe this is part of the reason.

For more on the digital yuan, please see here

https://bit.ly/2y2w29I

【Ethereum status】

In mid-March, when Ethereum crashed,

the article said it was purchased at 12,000 yen.

Currently, it has surpassed 20,000 yen and continues to rise strongly.

4-hour chart

Bitcoin’s halving is coming soon,

so I want to monitor how the price will react.

However, the Ethereum bought at 12,000 yen is periodically being supplemented with money at 15,000 yen or 18,000 yen.

I will continue to invest regularly.

However,

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