Cryptocurrency Market Analysis [December 15 Issue]
【Won 5th place in MagMag Magazine Awards】
In 2020, the major newsletter site
MagMag announced the Magazine Award results.
In the Asset Management category, there were three areas: equities, FX, futures, bonds, and real estate
Among them, we won 5th place in the FX・futures・bonds division.
We were awarded.
Since there was no dedicated cryptocurrency category,
this time the award is in that division.
A newsletter focused on cryptographic assets (cryptocurrencies) is
the only one to win, so I’m very glad.
Factors contributing to the award include
・Cryptographic assets (cryptocurrencies) made a major leap this year
・From the COVID-19 shock (March), performance
exceeded fourfold.
・Among newsletter readers, a large number achieved results
and increased significantly.
These three can be cited.
This newsletter started in 2016,
and although some readers have subscribed from the beginning,
I’m glad that many have been able to profit.
(Reference) 2020 MagMag cryptocurrency newsletter wins 5th in Asset Management!
https://bitcoin-newstart.com/2020magmag
＊In addition to the MagMag newsletter (1000 yen per month),
I also publish paid articles on GoGogjan (650 yen per month),
but the contents are exactly the same, so GoGogjan subscribers do not need to switch to MagMag.
The reason GoGogjan’s monthly fee is cheaper is
that MagMag’s fees are relatively high (being a large platform,
they charge accordingly...).
Now, to the main topic.
Bitcoin remains solid, holding around 2 million yen.
Bitcoin is maintaining the price band of around 2,000,000 yen.
Bitcoin daily chart
Continuing from last week,
Bitcoin’s price is converging.
The price in dollar terms is approaching the $20,000 resistance line (around 2,080,000 yen),
and it tends to drop after hitting it,
resulting in a converging price situation.
When Bitcoin recorded 1.5 million yen in 2019,
there was a momentary drop in price,
but this rally remains solid and at a high level.
Also, the historic highs for Bitcoin vary by currency.
In dollars... around $20,000
In Japanese yen... around 2,200,000 yen
so the all-time high in yen has not yet been reached.
Nevertheless, Bitcoin remains at robust levels comparable to the bubble era, which is surprising.
Looking at price movements of each currency since last week,
NEM is holding in the high range,
but Ripple has fallen sharply.
Other currencies are slightly down.
Year-end in the foreign exchange market often brings lower volumes due to exchange closures,FX
but for cryptocurrencies, trading continues regardless.
However, recently volumes have been decreasing toward year-end.
【Ripple Snapshot Completed】
Last week, on December 12, Ripple’s
snapshot was completed.
At the snapshot time, holders of Ripple received the same amount of the cryptocurrency
Spark tokens for free.
You must own Ripple in a snapshot-targeted wallet.
Ripple daily chart
Snapshot time
Ripple’s price at snapshot was 58 yen.
Since then, Ripple has fallen to 51 yen.
Before the snapshot, investors were watching how high Ripple would rise,
but the result shows that
the highest point was 80 yen on November 24.
It has been about 18 days since the snapshot.
In summary:
November 1... 25 yen
November 24... 80 yen
December 12... 58 yen
Currently... 51 yen
That’s the situation.
Next, NEM’s snapshot will begin in January.
NEM’s snapshot is scheduled for January 14,
and many investors will be watching whether Ripple’s snapshot’s peak is a guide.
For NEM, a new currency symbol is planned to be assigned.
The symbol will replace NEM
as a new currency designation,
so it will have a different standing from Ripple’s Spark token.
(Reference) How to apply for the Symbol
https://bitcoin-newstart.com/nem-symbol
【Will Custody Insurance Accelerate DeFi?】
Currently, custody insurance that pays out for losses from hacking of crypto assets
is becoming more widespread.
If this becomes mainstream, institutional investors and others are expected to enter DeFi and the broader financial system,
and it could create demand for crypto assets (cryptocurrencies) including interest-bearing opportunities in the future.
From this trend, it is important to consider which currencies will be in demand.
【China's Digital Renminbi issuance in 2023?】
News suggests China’s digital yuan may be issued around 2023.
In China’s digital yuan, fast settlement is possible,
and China’s money flow is expected to shift from paper money to digital.
This itself could be a positive factor for digital currencies such as Bitcoin,
and conversely, if digital yuan succeeds, the upfront benefits may flow to China.
Digital currencies enable substantial cost reductions,
more efficient tax revenue management, and easier tracking of wealth by the wealthy,
compared with cash.
【U.S. major companies buy more Bitcoin】
MicroStrategy purchased more than 40 billion yen worth of Bitcoin in August,
and has now bought an additional 5 billion yen worth of Bitcoin.
This is the second round of additional purchases.
Regarding MicroStrategy,
the profit from rising Bitcoin prices and
the rise in MicroStrategy’s own stock price are both benefits.
MicroStrategy’s Bitcoin purchases
increase the company’s assets,
which in turn promotes further stock purchases by MicroStrategy.
Some experts say MicroStrategy’s purchases are excessive, but
Bitcoin itself is a fixed-supply asset with only 210,000 units,
so as large companies buy, supply cannot keep up, and demand could rise further.
(Mid to long term)
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