Cryptocurrency Market Analysis [May 18]
Cryptocurrency Practical Investment Email Newsletter May 18
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Here is the ranking of domestic and overseas exchanges I choose
↓↓
http://bitcoin-newstart.com/exchange-japan-bitcoin
【Cryptocurrency Market Analysis】
From last week, the price movements of cryptocurrencies are summarized as follows
for the one-week period
as shown below
Display: current price (change from one week ago)
Bitcoin
5,000万 yen (21%)
Ethereum
380,000 yen(10%）
Ripple165 yen（-％）
Polkadot4,300 yen（-%）
Binance Coin58,000 yen（18％）
Cardano240 yen（10%）
Uniswap3,800 yen（-10%）
ICP 22,600 yen（-％）
Bitcoin dropped sharply from last week’s6,300万円
price to around a 20% decline
to5,000万円
Bitcoin daily chart
The chart shows the price around the key support line of
5,000万円付近, where the price is still holding
as of now.
If it breaks below here, the next target price (resistance line) would be
around
4,40万円付近となります。
From the low in2021年12
which can be interpreted as the start of a downtrend.
This chart suggests that
some investors are viewing it as a buying point based on chart patterns and Bitcoin’s fear index.
One of the factors behind Bitcoin’s decline
is that global automaker Tesla
stopped accepting Bitcoin as payment.
The reason is that the energy consumption of Bitcoin transactions
raises concerns about CO2 emissions.
Tesla, known as an electric vehicle company,
also sells solar panels and other products and has been particularly proactive in environmental issues.
If Bitcoin payments were accepted, the transfer would consume electricity,
which would contribute to CO2 emissions.
What they are saying is reasonable.
Bitcoin’s energy-intensive mining is largely associated with China
and much of it relies on coal from fossil power generation.
If Bitcoin’s energy supply came from clean sources such as hydro, geothermal, or solar rather than fossil fuels,
Tesla would likely continue to accept Bitcoin payments.
However, Tesla still holds Bitcoin. Merely holding it does not require energy consumption.
Cryptocurrencies are designed to consume energy in the processing of transfers.
Additionally, Tesla is still evaluating cryptocurrency payments,
and it is possible that other cryptocurrencies might be adopted instead.
（Reference）Tesla stops Bitcoin payments due to environmental concerns
https://bitcoin-newstart.com/tesla210514
【Will Environmentally Friendly Cryptocurrencies Rise in Value?】
With Tesla pausing Bitcoin payments, the focus turned to the energy consumption,
so will environmentally friendly cryptocurrencies be used?
Bitcoin was created early on as a cryptocurrency,
and thePOW mechanism was introduced, causing a significant energy usage in transactions.
In comparison, the later-developed
LitecoinPOW is used, but with lower energy consumption.
And once aPOS system is adopted, energy consumption will decrease further.
Ethereum is currentlyPOW, but
in the futurePOS will be adopted.
There are many cryptocurrencies today, but among newer ones, there are many with lower energy consumption than Bitcoin.
However, for cryptocurrencies to have a future as an investment, it is not only about energy consumption; it is about the currency’s project and whether it serves as a store of value, like Bitcoin.
On Twitter,CEO of the payment company Square
CEO, Jack Dorsey, stated Bitcoin’s
electricity consumption to be addressed by supplying clean energy by 2030
up to 100%年までにpercent
to achieve 100% clean energy by 2030.
As the cryptocurrency market expands, renewable energy will undoubtedly become the focus,
not only for cryptocurrencies but for all industries.
（Reference）What are environmentally friendly cryptocurrencies?
https://bitcoin-newstart.com/bitcoin-co2
Southeast Asia’s largest DBS BankDBSannounced on14that it will launch a crypto asset (cryptocurrency) trust service for institutional investors, a first for an Asian bank to issue such a fund.
The trust’s targeted assets are Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH)（リップル）, XRPの種
4（コインポスト）
DBSis a bank in Singapore,
and in Japan it is a major mega-bank around the level ofMitsubishi UFJBank.
This time, since it is an investment trust, it is a fund linked to cryptocurrency prices.
The four selected assets include Bitcoin Cash, Ripple, which feel a little outdated,
likely this was decided earlier.
There have been no notable news about Bitcoin Cash, and Ripple remains
SEC
Aside from this, BitcoinETFbeing approved by theSEC
it remains unclear whether it will be approved.
