Virtual currency market analysis [August 18 issue]
Bitcoin is maintaining at the same level as last week's 1.25 million yen.
It continues to hold at that price level.
Bitcoin 4-hour chart
However, since the lows are gradually being raised,
the price feels solid.
Around August 7th, after breaking above the red horizontal line around 1,220,000 yen,
it rebounded at the line and has been gradually rising.
It is moving toward 1,300,000 yen, and because it is rising in a clean pattern like this,
unlike the move that surged to 1,500,000 yen by June last year,
this is a different price movement.
This is...
Looking at Bitcoin's weekly chart.
On the weekly chart, you can see the price since the end of 2017.
What to focus on here are
August 2018, January 2019, and April 2020 (COVID-19 shock)
and how clearly a trendline can be drawn to the lows.
From this line, Bitcoin is gradually increasing over the medium to long term.
Even when looking at the price range of the late 2017 bubble,
Bitcoin has already entered the bubble price range.
In this sense, compared to other altcoins,
Bitcoin is said to be reaching that level faster.
This year, Ethereum has already risen more than Bitcoin by more than four times,
Ethereum
Ethereum's current price is around 45,000 yen,
but during the bubble its price was around 16,000,000 yen,
which is nearly four times higher than now.
From such factors,
Bitcoin's price, compared to other currencies, is relatively solid
and has been rising steadily.
[Ethereum is already
to reach four times its price within the year]
Last week Bitcoin was at the same level as the week before,
but Ethereum has continued to rise in price.
Ethereum's daily chart
This is a chart since the March crash (COVID-19 shock) this year.
The recent rise is truly a remarkable
upward movement.
Ethereum is approaching the 45,000 yen line on the upside.
One price point to watch is
the next level at 50,000 yen, which is likely to be increasingly watched.
Recently, for Ethereum, DeFi using Ethereum’s system has heated up, and that impact has increased investment in Ethereum as well, which is said to be a major influence.
In reality, as Ethereum’s trading volume increases, gas fees (Ethereum transaction fees)
have spiked, with a recent spike nearing 1,000 yen.
Regarding the surge in Ethereum gas fees,
here
Ethereum-based cryptocurrencies (ERC-20) consume Ethereum as a fee during transfers,
and those fees are called gas.
The surge in Ethereum gas fees
will also have a significant impact on trades,
so how Ethereum will improve with this year’s upgrade is a major point.
If gas fees were normal, sending Ethereum would cost only a few yen even for about 10,000 yen.
Ethereum is in the final stage of its 2.0 upgrade by the end of the year.
There have been bugs found,
but during testing there are various challenges to overcome, which will lead to a better upgrade.
I believe a better upgrade can be achieved.
Indeed, Ethereum’s gas fees are high in this situation,
and it can be said that high fees are currently a reality.
However, there is no other cryptocurrency platform that has advanced as far as Ethereum has reached,
so including gas fees, the upgrade that improves trading volume will play a very important role.
Regarding Ethereum’s surge and the rise of DeFi tokens, please refer to this.
https://bitcoin-newstart.com/news0814
【In DeFi, can you become a millionaire?】
YouTuber Ikehaya has recently talked about becoming a millionaire in DeFi,
but honestly, in the current situation, DeFi is not a tasty option.
(Perhaps temporarily)
A while ago, on this site as well,
Compound’s
BAT coin offered over 10% annual yield, which attracted some entrants,
but now, as interest rates attract fewer entrants,
the rate has normalized and is comparable to staking or even lower.
At this stage, it seems unlikely to call someone a millionaire.
That claim is just hype.
Recently, DeFi has also been widely talked about
YAM, andCRV,CRY are DeFi tokens
and have been listed on Binance as well.
However, many people who bought them have seen sharp crashes
in YAM, with declines of over 90%.
Of course, there can still be opportunities ahead,
but such tokens carry extremely high risk.
With YAM, you can deposit currencies like WETH to receive other currencies,
but with new systems like this, it isn’t guaranteed that everything can run smoothly, and there are risks, so for those who invest in cryptocurrencies, it isn’t easy for beginners to participate.
Even without DeFi, simply keeping assets on an exchange can provide a decent annual return through staking.
You can still earn substantial yields.
)
