Cryptocurrency Analysis 【January 26】

Virtual Currency Practical Investment Newsletter January 27

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Ranking of domestic and overseas exchanges I select

is here↓↓

http://bitcoin-newstart.com/exchange-japan-bitcoin

I have been invited to write a series on cryptocurrency in the FX攻略 magazine.

When you stop by a bookstore, I would be glad if you read it.

https://bitcoin-newstart.com/fxkoryaku

【Crypto Market Analysis】

The price movement of cryptocurrencies since last week

The week’s movements are summarized as follows

Summary: Current price (change from a week ago)

Bitcoin

3,470,000 yen (-6%)

Ethereum

147,000 yen (16%)

Ripple 28.6 yen (-0.6%)

Polkadot 1,901 yen (8%)

Binance Coin 4,420 yen ( +6%)

Cardano 38 yen (-%)

NEM 23 yen (-%)

【2021 Crypto Market Outlook】

I wrote about the 2021 crypto market outlook for Money Voice.

https://www.mag2.com/p/money/1001574

Bitcoin has fallen from the 3.7 million yen price range last week and is currently settling at around 3.4 million yen.

Exactly one week ago it was converging at 3.7 million yen, and it seemed it could move up or down, but the price fell below and has been hovering around 3.4 million yen.

Normally, with Bitcoin dropping to a lower price tier, other coins like Ethereum might be dragged down, but instead Ethereum rose and reached a peak price of 150,000 yen in yen terms.

In other words, funds may be shifting from Bitcoin to Ethereum and other currencies.

What’s rising the most is Ethereum and DeFi-related coins.

【Ethereum Hits New High】

Ethereum recorded a new high of 150,000 yen today.

Ethereum daily chart

Looking at Ethereum’s daily chart, since 2021 the price range has widened considerably.

The range is large, but the high and low are rising cleanly.

(red parallel line)

With the new high, going forward

Bitcoin and Ethereum may both continually push higher like before.

Bitcoin’s peak was 2,200,000 yen at the end of 2017

but recently it temporarily hit 4,200,000 yen.

That ascent was 90%

If Ethereum were to rise by the same rate

it would climb by 13.5万 yen,

making Ethereum reach 28.5万 yen.

Of course, this is only a guess

but given the high-price surge,

it’s noteworthy whether Bitcoin-like new highs can be achieved.

For Ethereum, despite the ongoing Ethereum 2.0 upgrade, high transaction fees

and various Layer-2 solutions are being examined and are close to practical use.

Is this optimism-driven?

I’d prefer to see fees drop first before such optimism.

【DeFi Coins Rally】

Along with Ethereum, DeFi coins are rallying.

DeFi price charts

DeFi is a financial system mainly built on Ethereum programs

that allow cryptocurrency exchanges and lending within the program.

DeFi is deeply connected with Ethereum, and ongoing improvements in fees and speed are advancing toward practical use.

DeFi coin charts can be viewed on CoinGecko by selecting DeFi from the menu to see coins by market cap.

The top by trading volume is Chainlink, which is also in the top ten by market cap.

Next is Wrapped Bitcoin, a Bitcoin that can be traded on the Ethereum blockchain.

By converting Ethereum to Wrapped Bitcoin, you can trade Bitcoin in Ethereum’s DeFi ecosystem.

＊Wrapped Bitcoin tracks Bitcoin’s price

Next major DeFi coins are Uniswap

Aave

Synthetix

and other major DeFi coins continue to follow.

These coins are precisely those that had high trading volumes and were highly anticipated; they line up accordingly.

However, personally I hold DeFi coins but, compared with Ethereum, I haven’t invested large sums, so while the rise is welcome, the asset gain has been modest.

Ethereum holdings are larger than DeFi holdings, so the increase is modest.

【Bitcoin ETF】

One event I’m watching this year is Bitcoin ETF.

Until now, Bitcoin ETFs have been filed by several firms, but the SEC has rejected all of them in reviews.

Reasons include price manipulation and high volatility.

However, since last year, there have been favorable conditions, such as

– institutional investors buying Bitcoin

– the SEC commissioner being replaced by a Bitcoin-friendly figure

compared to before

and a generally better environment.

Additionally, regarding Bitcoin ETFs, the tax rate applies like stock investments, and you don’t need to hold actual Bitcoin, which lowers the hurdle to investing and could attract many investors.

If Bitcoin ETFs are approved, those who are waiting to buy an ETF may see even higher prices by then. (lol)

＊Please make investments based on your own judgment.

（Reference）

Five reasons the SEC should approve a Bitcoin ETF

https://bitcoin-newstart.com/2021etf-sec

【Engine Coin Listed on CoinCheck on the 26th】

CoinCheck will newly list Engine Coin,

a currency in the NFT category.

Engine Coin is a cryptocurrency used in NFT-related assets.

NFTs are assets verified by cryptocurrency,

and ownership is recorded on the blockchain.

For example, if a painting worth 1 billion yen is owned by ten people,

each person would need to buy a 100 million yen NFT to hold a stake.

That NFT proves ownership, and is recorded on the blockchain.

Why use cryptocurrency? Because the blockchain is immutable and transparent, so

everyone can see the proof.

Engine Coin is also well-known as a gaming cryptocurrency,

where weapons and items are purchased as NFTs in games.

NFTs are assets, so you can sell weapons and items to other users.

In short, NFTs can function like land or membership rights.

Enhancing weapons in a game and later selling them at a higher price is also possible structurally.

This could broaden economic activity even further.

In that sense, Engine Coin’s future projects are worth watching.

（Reference）

Engine Coin features and whether to buy

https://bitcoin-newstart.com/coincheck-enjin