Cryptocurrency Market Analysis [October 6 Issue]
Bitcoin is in roughly the same price range as last week.
Bitcoin daily chart
Prices are converging around 1,150,000 yen.
1,150,000 yen is the high from before the COVID-19 shock in
2020.
Also, since the trend line from May has
prices above it, technically the outlook remains bullish.
[Arrest warrant for BitMEX CEO] Trump’s COVID-19 infection
As a negative market news item from last week,
there was news that
・Arrest warrant for the BitMEX CEO
was issued
and
・President Trump contracting COVID-19
was reported.
BitMEX
is based in Hong Kong and is a well-known
leverage-trading exchange.
With high leverage of up to 100x, it attracted participants
from around the world.
The arrest warrant this time came from the U.S. government, and BitMEX has
Americans registered there, and an unregistered
operator also attracted customers, which I think was the cause.
* By unregistered, for example, if you allow Americans to use the service
you would need permission from the U.S. government
to do so
Such things are common in general, but this time it was used as a warning to other exchanges,
in other words, a form of intimidation.
Usually, account openings require identity verification before trading
to allow trading afterward, but
if the withdrawal amount is small, anyone can trade on overseas exchanges
as is the current situation.
Even in such cases,
the United States wields considerable influence, as expected.
For ICOs and
IEOs, allowing only non-U.S. residents to participate
appears reasonable.
However, if you want to invest properly in cryptocurrencies, the domestic exchanges in Japan are currently not sufficient.
Of course, serious investors can invest in domestic coins like Bitcoin, but
when aiming to invest at a low price in promising currencies, it is difficult domestically.
In such areas, the Japanese government should not only regulate but also provide investors with opportunities to invest freely.
Also, after President Trump contracted COVID-19, U.S. stocks and the cryptocurrency market temporarily
declined.
However, in the case of cryptocurrencies,
the decline was temporary, and prices have already recovered to the same level as a week ago.
Compared to the increase in 2019, this year's cryptocurrency market has shown resilient movement.
Although the cryptocurrency market is slowly
building a foundation, it feels like
it is becoming more solid.
[Ethereum's same level last week]
Ethereum daily chart
Ethereum, like Bitcoin, is converging in price.
The converging price is the highest price of 2019.
From the low after the March crash, looking at the
trend line, it has not broken yet, so the situation remains
bullish.
[Ripple breaks out of the long-term downtrend]
A Ripple topic after a long time.
Ripple weekly chart
From the 2018 downtrend, drawing a long-term trend line
you can see that it broke above it around August.
Since then, the price has risen and is currently
pulling back, but it has not broken the trend line,
and the short-term outlook remains bullish.
Recently, Ripple's international conference
“SWELL2020” is on October 14– 15, two days
was announced.
It will be interesting to see which members attend.
Depending on the members, there could be reasons for an uptick.
Another topic is
Ripple obtaining a smart contract patent
Regarding this, in the future Ripple may deploy
DeFi and other services usingits smart contracts
in various ways.
Ethereum's smart contracts are now a major factor that cannot be ignored,
but the fees are also high in the current situation.
Ripple's smart contract technology could address this
and it will be interesting to see how the mechanism develops.
【IMF explains virtual currencies】
The International Monetary Fund (IMF) explains what cryptocurrencies are.
IMF explains what cryptocurrencies are about in a video.
Video:
https://twitter.com/pannajf/status/1312588519001391104
The explanation is in English, not YouTube, so
I’m not sure how to use Japanese subtitles, but
from what I saw, it discusses risks such as cryptocurrency hacks
while also covering fees, peer-to-peer exchanges, speed, and easy storage of value in a generally positive light.
I’m glad to see a United Nations body holding this kind of view.
【FLOW Auction starts】
The auction for the cryptocurrency FLOW will be held via the site CoinList.
FLOW is a blockchain project related to games,
which issues digital assets within games.
It already has involvement from NBA players and major
VCs, making it a noteworthy project.
The auction starts on October 6 and uses a Dutch auction
where the price starts high and then falls.
Participants aim to buy as cheaply as possible, placing bets to obtain FLOW
the currency.
Also, KYC takes two to three days, so please keep that in mind if you participate.
For details on FLOW and the auction, see
https://bitcoin-newstart.com/flow-auction
【Large companies are holding Bitcoin】
Recently, more and more companies appear to be holding Bitcoin.
https://www.coindeskjapan.com/80383/
Nasdaq-listed companies holding Bitcoin worth about 45 billion yen.
In fact, last week, Bitflaer’s
blog mentioned this, noting that Japanese companies like SoftBank
and other IT firms may also be holding Bitcoin.
It is very interesting that major exchanges report on this.
The increasing uncertainty in the economy due to the coronavirus
has heightened Bitcoin’s prominence.
BitFlyer blog
https://blog-jp.bitflyer.com/n/n4b63821c190e
【Dfinity airdrop started】
In 2018, those who registered with an email and joined the community were eligible for an airdrop (free distribution).
Two years later, some may have forgotten, but
the price was about 120,000 to 150,000 yen, comparable to Uniswap’s
airdrop.
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