Cryptocurrency Market Analysis [July 12]

Crypto Practical Investment Newsletter July 12

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In the newsletter’sQ&Asection, we will introduce some of them.

Ranking of domestic and international exchanges I choose

is shown here↓↓

https://bitcoin-newstart.com/bitcoin-account

【Cryptocurrency Market Analysis】

From last week, the price changes of cryptocurrencies

over the past week are summarized as follows

Summary: Current price (change from one week ago)

Bitcoin

3,720,000 yen(-5％)

Ethereum

232,000 yen(-10%）

Ripple70 yen（-9％）

Polkadot1,670 yen（-6%）

Binance Coin35,000 yen（4％）

Cardano148 yen（-8%）

Uniswap2,200 yen（-2%）

ICP　4,300 yen（-17％）

Bitcoin has fallen slightly from last week’s 3.8 million yen but remains in a similar price range overall.

Bitcoin daily price chart

Last week’s situation remains unchanged, with a range-bound market and price convergence continuing.

Whether it moves up or down from this convergence,

either direction is possible, so attention to future price movement is warranted.

A price rebound from normal convergence can trigger

short-term trends.

As I mentioned last week, until recently

the upper bound of the range was4,400 yen

but now it has4,000 yen

lowered.

Recent notable news is

that Grayscale’s Bitcoin trust is scheduled to unlock on

July 18.

Regarding post-unlocking,

it will be possible to sell Bitcoin investment trusts worth

As of now, there may be some profit-taking at current prices,

but the popularity of Bitcoin trusts has been driven by the rise in Bitcoin prices since the end of last year,

so the question is how many people hold them for medium to long term investment.

Bitcoin’s price now is from January to February this year,

so there aren’t many people who are highly profitable from the unlocks,

and personally I think the impact may be limited.

However, markets can surprise us.

In response to such news, large investors (distinct from trust purchasers) who sell can also

be present, which is worth noting.

Whether movement will emerge from the current range after the 18th is another point of interest.

【Bitcoin Mining in the Second Quarter Report】

When trading Bitcoin, a third party conducts mining computations and receives rewards in Bitcoin.

Mining is a crucial part of the Bitcoin network.

Mining is done with machines and consumes electricity, but

the electricity is recommended to come from sustainable sources such as wind, geothermal, and solar power.

Tesla, a major automaker, has stated that if more than 50% of mining power comes from sustainable sources, it would resume Bitcoin payments.

North American miners, TeslaCEOElon Musk,

the Bitcoin investment firm MicroStrategy

Saylor, who founded the Bitcoin Mining Council (BMC)

Bitcoin Mining Council (BMC)

BMCSecondquarter reportcompares to the first quarter and shows that more than half of Bitcoin mining electricity

is from sustainable sources.

Already a majority uses sustainable power, but due to China’s mining crackdown,

Chinese mining power has plummeted, leading to these results.

Likely Tesla will resume Bitcoin payments if it maintains a majority in the future.

Efforts addressing Bitcoin’s environmental impact are becoming more active, which is very positive.

From a mid-to-long-term perspective rather than short-term price movement,

it may be better to focus on longer horizons.

(Reference) Bitcoin Mining Council

Focus on the second2Q report

https://bitcoin-newstart.com/bmc-bitcoinminigreport1

【Uniswap Layer 2 Has Started】

has released Layer 2 on Uniswap.

Optimismhas been launched.

Layer 2 uses another layer for transactions to reduce

speed and fees.

Uniswap is built on Ethereum, so when trading, Ethereum is always paid as a fee,

and when Ethereum transactions increase, fees can spike, sometimes

making a single trade cost several thousand yen.

By using Layer 2 technology, trading can be done for only a few yen to tens of yen.

Because Layer 2 has a different layer, you first transfer funds to a Layer 2 wallet

and then trade from that wallet, enabling consistently low fees.

Currently, Ethereum fees are fluctuating up and down,

but when fees are cheap, sending to a Layer 2 wallet and trading from that wallet

offers very user-friendly trading.

This news relates to Ethereum, so those trading domestically or holding Ethereum

should be aware of it.

（Reference）What is Layer 2?

https://bitcoin-newstart.com/layer2

Also, in a report by Goldman Sachs

there is a possibility that Ethereum could exceed Bitcoin in value.

Value refers to market capitalization surpassing Bitcoin’s.

This Layer 2 news from Uniswap, along with

Ethereum’s own updates and the ecosystem built on Ethereum,

are rapidly developing, and it’s possible that traditional financial institutions

will also deal with it in the future.

Just last week, Compound Lablablaunched fixed-rate 4% services for enterprises,

something existing financial institutions cannot do.

（Reference）

Goldman Sachs report: Ethereum could surpass Bitcoin in value

https://forbesjapan.com/articles/detail/41519