Cryptocurrency Market Analysis [February 23]

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Ranking of domestic and overseas exchanges I choose

is here↓↓

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

I will be doing a serialized cryptocurrency feature

in the FX攻略 FX magazine.

When you stop by a bookstore

I’d be grateful if you could read it.

https://bitcoin-newstart.com/fxkoryaku

【Cryptocurrency Market Analysis】

Price changes of cryptocurrencies since last week

and a summary as follows for the week

are shown

Display: Current price (change from one week ago)

Bitcoin

5,600,000 JPY (9%)

Ethereum

181,000 JPY (-5%)

Ripple 58 JPY (-%)

Polkadot 3,710 JPY (30%)

Binance Coin 27,000 JPY (90%)

Cardano 105 JPY (16%)

NEM 54 JPY (40%)

Bitcoin reached a new high of 5,000,000 JPY two weeks ago and has further surpassed it to record 6,000,000 JPY.

The pace of the rise is quite fast.

Bitcoin daily chart

As I write this article, a correction decline has occurred,

so there is a possibility that the price may fluctuate significantly thereafter.

At this point, Bitcoin

fell below 5,000,000 JPY, marking a major correction, but

it is currently rebounding above a trend line drawn at a recent low.

Whether this trend line will continue to function and lead to further gains

is a point to watch.

Or if the price breaks below this trend line

there is a possibility of falling to the 4,800,000 JPY resistance line.

Last week’s Bitcoin fundamentals

will be explained.

On February 20 last week, Bitcoin

reached 6,000,000 JPY

This was due to

・Canada’s Bitcoin ETF recording 43 billion JPY in trading in two days

・MicroStrategy announcing an additional 9,000,000,000 JPY investment in Bitcoin

・Elon Musk changing Twitter’s icon to Bitcoin

There are these factors.

Canada’s Bitcoin ETF

as the first ETF, has drawn attention.

It traded 43 billion JPY in two days, but over a week

it is expected to reach 100 billion JPY in purchases.

ETFs are not physical assets but stocks, so if you buy a Bitcoin ETF,

the management company buys Bitcoin instead, which naturally adds buying pressure.

Another major advantage is that you don’t need to store it yourself for security, and the tax system is the same as stock investments, so

there is a possibility that cryptocurrency taxes could be cheaper.

The most notable thing about ETFs is the U.S. SEC. Since 2021

the ETF applications have been prepared for the SEC, so

all eyes are on whether it will be the first Bitcoin ETF approval by the U.S. SEC.

If approved, it could create substantial buying pressure.

Also MicroStrategy’s

Bitcoin additional investment

is a bold amount of 90 billion JPY

being revised upward from 40 billion JPY to 90 billion JPY

according to reports.

In 2021, institutional investors’ participation will continue to attract attention.

Also Elon Musk’s

Twitter profile picture has been changed to Bitcoin

for about one day, which has generated a lot of buzz.

Previously, Elon Musk’s profile included #bitcoin

on a short-term basis, suggesting support for Bitcoin.

Taking all of the above into account, Bitcoin’s

fundamentals remain very strong.

Concerns about Bitcoin

include that regulation of cryptocurrencies by various countries

is not advancing yet.

Some countries are considering requiring KYC (identity verification) for all cryptocurrency wallets,

but if the rules become too strict, they may drive users to overseas exchanges,

making it hard to find a good balance.

（Reference）Bitcoin 6,000,000 JPY record

https://bitcoin-newstart.com/btc210221

【Ethereum’s All-Time High Price of 200,000 JPY Recorded】

Regarding Ethereum

the all-time high of 200,000 JPY was recorded last week.

At the end of 2017, the peak was around 160,000 JPY, so

this is a very strong rise.

Factors driving Ethereum’s surge

include

・Major exchanges starting Ethereum staking services

・Ethereum-based NFTs becoming a trend

These are the two causes.

First, Ethereum’s official staking service is currently available.

This requires locking Ethereum for 1–2 years

and offers annual yields of 5–8% as rewards.

Ethereum 2.0 upgrade progress affects when the lock will be released.

U.S. major Coinbase has

begun its own Ethereum staking service,

making it easy for holders to participate in staking,

which could increase staking and reduce circulating supply, stabilizing the price.

Coinbase takes a 25% fee for rewards,

but in return, they may distribute varying currencies according to the amount staked,

allowing flexible use such as borrowing cryptocurrency.

Note that staked Ethereum cannot be withdrawn until the lock is解除

released, so if new currencies are issued,

they are likely to cause a shift in supply.

（Reference）

Ethereum price reached 6,000,000 JPY

https://bitcoin-newstart.com/eth210218

【NFTs】

Recently, information about NFTs has been circulating more often.

NFTs refer to ownership rights traded on the blockchain, which underpins cryptocurrencies.

Also known as “non-fungible tokens.”

Recently, digital art has been traded at high prices, with early investors actively buying and selling.

When you purchase art as an NFT, the ownership belongs to you, so you can sell it later when it has appreciated in value.

＊There may be works that are restricted by copyright.

NFTs ensure ownership rights on the digital realm, making tampering impossible and enabling more efficient asset acquisition.

Digital art can be copied, but the key point is who owns the art.

The proof of ownership is the NFT you purchased.

Also, famous DJ artist (3LAU)

has released a full album as an NFT through an auction,

and it seems to be gaining public recognition gradually.

With NFTs, besides directly purchasing the work, there are index-based currencies tied to value,

so for investment purposes, options will increase in the future.

【Altcoins Rally】

Altcoins have been rising notably since last week.

Polkadot

and

NEM, among others.

Polkadot’s related projects are progressing, forming a strong fundamental backdrop.

As for Binance Coin,

the DeFi trading volume on Binance Smart Chain (BSC) is very strong,

and people are buying BNB to earn interest through staking pools.

Regarding NEM, personally I’m not sure about the fundamentals.

Though Symbol, the new currency, has faced repeated delays since last year,

this has caused some investors to feel distrust in the project, yet the currency price is rising.

Whether a currency’s price rises due to demand or mainly due to speculation

is something we should clearly recognize.

（Reference）

HashMasks—the NFT to watch

https://bitcoin-newstart.com/hashmasks