Cryptocurrency Market Analysis [December 1st Issue]
Bitcoin reached 2,000,000 yen immediately.
Bitcoin was 1,900,000 yen last week
as I write this article
and at the moment it is about 1,990,000 yen with incredible
momentum, continuing to rise.
Bitcoin chart
Bitcoin over the past week
fell once to the low 1,700,000s,
but afterward the price rose
back to the same level as a week ago
and continued rising toward 2,000,000 yen.
The pullback last week was large,
and at one point it stayed down
to see how it would fare in December,
but no one could have predicted that in one week
it would bounce back to the same level and reach
2,000,000 yen.
What kind of market will December bring?
It is a development you cannot take your eyes off.
Regarding Bitcoin this time,
the day before, renowned investorRaoul Pal
tweeted that he would sell all of his gold and hold Bitcoin and Ethereum in an 8:2 ratio,
which has been a topic of discussion.
Momentum shows no signs of stopping.
That is what Bitcoin looks like right now.
If you look at the recent rise,
Ripple rose from 44 yen to 66 yen,
NEM rose from 14 yen to 19 yen,
and these are brands familiar to Japanese people.
Holding these currencies could lead to free distributions of
the currencies’ airdrops,
which are planned for December 12 (Ripple) and
January (NEM).
In line with this bullish crypto market trend,
this free-distribution timing may further push up
the prices of these two currencies.
Attention should be paid to whether this will push up
Ripple surge again
Like Bitcoin, Ripple also dropped into the low 50s yen
but then surged to record 65 yen,
and Ripple was around 25 yen in early November,
so more than double in about a month.
Ripple price chart
Regarding Ripple,
the near-term price of 70 yen is seen as a milestone,
but the key point is how much buying pressure grows
before the snapshot on December 12.
A common notion with Ripple is that the milestone is 100 yen.
How can the approach be made to reach this price?
Around December 12, a psychological battle is expected,
and anyone considering Ripple investment should
be prepared with a solid view.
Recent price increases for Ripple
Reference article
https://bitcoin-newstart.com/xrp1129
【Spark token being
supported by Binance. What about domestically?】
Holding Ripple allows you to receive
for free Spark tokens.
Spark tokens require pre-registration (opt-in)
and must be stored in a compatible wallet to receive
one for each Ripple token at no cost.
Domestically, GMO Coin has been quick to
announce Spark token distributions.
In other words, distributing Spark tokens implies they will be listed on exchanges.
Spark token distribution will not occur all at once but
will be distributed gradually.
For example, if a domestic exchange
does not distribute Spark tokens,
what would happen?
Ripple holders would move funds to other exchanges that do offer it.
Alternatively, domestically,
Spark token distribution may be blocked because
the Financial Services Agency would need to review it.
If distribution becomes impossible, Japanese Ripple holders would move assets to overseas exchanges like Binance where distribution has been decided.
Even so, following GMO Coin, other exchanges may also announce similar plans.
As of December 12, a snapshot will be taken for Ripple holders who have it in a compatible wallet to receive the airdrop.
There is a possibility that more people will want to hold Ripple by that time.
(Reference) How to receive Spark tokens with Ledger NanoSpark token
receipt
https://bitcoin-newstart.com/ledgernano-x
【Ethereum 2.0 released on December 1】
Ethereum has completed the required deposits and Ethereum 2.0 will start as scheduled from December 1.
This is a very auspicious development.
Those who have deposited Ethereum this time will be locked for over a year.
However, recognizing that, depositing now could be very promising for the future.
Currently, Ethereum yields about 12% per year.
Going forward, more people will deposit Ethereum, and
the interest rate will settle at around 6 to 8%.
With a one-year lock, someone who deposited 100 million yen worth of Ethereum would receive at least around 8 million yen.
（Reference）Features of Ethereum 2.0
https://bitcoin-newstart.com/eth2-0
【Facebook’s virtual currency Libra may release in January next year】
Facebook’s virtual currency
Libra may be released as early as January next year
according to information available.
Libra was initially linked to five major currencies such as the dollar, yen, and pound,
but it will be released first in linkage with the dollar.
Why has the pace accelerated so much?
In the past, Facebook’s Libra faced opposition from around the world centered on the U.S.,
and personally I think it is a countermeasure to the digital yuan that China is pushing ahead to gain early advantage.
Releasing Libra ahead of digital yuan’s widespread adoption.
Libra already has a global user base as Facebook users.
In China, Facebook is not accessible, so Libra handling may be limited, but it is highly anticipated to see how Libra will impact the world.
Of course Libra is a positive factor for the crypto asset market.
（Reference）Features of Libra
https://bitcoin-newstart.com/facebook-globalcoin
【Be mindful of trading fees】
Currently, in the rising crypto market, when you trade on an exchange, fees tend to be high.
＊An exchange is a fixed price at which you can buy the currency held by the exchange.
For example, if you want to buy Bitcoin at 1,990,000 yen and the price at purchase is 2,010,000 yen,
the difference 2,010,000 − 1,990,000 = 20,000 yen
is the fee (spread).
Therefore, when buying a currency,
you should clearly understand the “standard price” and the “purchase price.”
be careful to trade with awareness of these.
On exchanges, fees tend to be somewhat higher,
so small profits from frequent trades can just eat up the fees.
During surges, the purchase price tends to widen,
so you need to be especially careful.
（Reference）Details of trading fees
https://bitcoin-newstart.com/price-spread
【DeFi insurance
There is DeFi insurance.
InsurAce, which provides DeFi insurance, has raised
$1M (100 billion yen)
to cover funds in case of a system attack on DeFi.
The mechanism to return funds if loans default exists, but
in case of hacking, the guarantee depends on the operator’s financial power, so if insurance spreads,
it could boost activity in DeFi, including Ethereum.
【Wallet Ledger sale 40% off (until December 1】
Today, December 1
to December 1, at Japanese official distributors
Ledger Nano sale is ongoing.
With a 40% discount, this is a rare opportunity,
so those considering a purchase may find it a good chance.
https://bitcoin-newstart.com/ledgernano-x
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