Cryptocurrency Market Analysis [February 8]

Practical Cryptocurrency Investment Article February 8

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【Cryptocurrency Market Analysis】

Price changes of cryptocurrencies since last week

(over one week) are summarized as follows

Display: current price (change from one week ago)

Bitcoin5,000,000 yen (13％）

Ethereum360,000 yen(15%）

Ripple99 yen（39％）

Polkadot2,500 yen（11%）

Binance Coin49,000 yen(13％）

Cardano137 yen（13%）

Uniswap1,400 yen（1%）

ICP　2,700 yen（16％）

Solana13,000 yen(14%)

Avalanche 10,300 yen(27%)

Bitcoin rebounded from last week’s price of around 43.13 million yen and is currently around 5,000,000 yen.

Bitcoin daily chart

Considering last week’s price range, the horizontal line at 3.8–4.5 million yen is a short-term range, but from last week’s status there was a possibility it would move up and down along this line.

However, on February 4, price rose sharply, broke above the short-term range’s upper limit of 4.5 million yen, and has since returned to the high of mid-January this year.

The next price target is 5.6 million yen, but currently price is in the middle of the horizontal lines 4.5–5.0 million and 5.0–5.6 million (around 5,000,000), so it will be interesting to see which zone the price will move in next.

Speaking of Bitcoin news, major automaker Tesla disclosed its current Bitcoin holdings.

In February 2021, it purchased 170 billion yen worth of Bitcoin and currently holds 230 billion yen. The gain from the purchase price is plus 60 billion yen.

And for the year 2021, profits were 14.7 billion yen and losses were 11.6 billion yen, resulting in a net profit of 3.1 billion yen.

This is probably because they initially booked 14.7 billion yen as profit, but as Bitcoin’s price fell and temporary losses appeared, they sold Bitcoin to offset gains to reduce taxable amount.

Isn’t this a very clever selling strategy?

Whether they immediately repurchased the 11.6 billion yen loss remains unclear, but since the year ends in December, if there was a profit at the beginning of the year, selling at a loss at year-end and repurchasing soon after can offset the loss against profits.

Perhaps Tesla used this method.

And as for the view on digital assets,

“We believe in the long-term potential of digital assets as an investment and as a highly liquid asset that can replace cash.

Like other investments, and as with cash and cash equivalents based in fiat currency, our holdings of digital assets can be increased or decreased at any time depending on business needs and market and environmental conditions.”

I feel this is a quite bullish comment on cryptocurrency.

From this, whether Bitcoin was bought is not directly known, but since the comment was made on February 7, Bitcoin rose from around 4.9 million to 5.1 million yen, suggesting perhaps those who knew this beforehand bought in anticipation...

Well, this is speculative and I won’t assert it as fact.

Regarding Tesla, a key point may be when Tesla restarts Bitcoin payments. Dogecoin might also be used not too far in the future.

I do not hold any Dogecoin, butw

Additionally, Canada’s major coating companyKPMG plans to add Bitcoin and Ethereum to its balance sheet.

And there is news that a Bitcoin mining company-ledETFwill be listed on Nasdaq.

The Bitcoin mining companyETFwill likely move somewhat in tandem with Bitcoin’s price.

China, which once held a large share of Bitcoin mining, has become more decentralized globally due to government bans; this is a notable point for the upcomingETFlisting.

Another note is MicroStrategy, a Nasdaq-listed company, purchased another 660BTC on February 1.

They bought around 4,000,000 yen price range; this may be a good timing too.

If you’re thinking of buying Bitcoin at a high price, using the timing of purchases by El Salvador or MicroStrategy as reference could be worthwhile.

【Ripple’s Surge】

In this rebound, Ripple’s price rise drew considerable attention more than expected.

Ripple is currently in a dispute with the SEC (Securities and Exchange Commission) in the United States, but the court’s permission toward Ripple is seen as favorable, which may have caused Ripple to be bought.

In December 2017, Ripple peaked at 400 yen, but in the ongoing crypto market surge since last year, it has not surpassed that price.

For Ripple’s direction, the court case is one key point, but practically, there hasn’t been much news in this area recently, is it just me…

【Gucci’sNFTs sold out instantly... but not quite】

The luxury brand Gucci released anNFTthat generated a strong response.

Even BitFlyer’s Mr. Kinnaka joined in purchasingNFT.

Initially, when released late at night, there was a rapid-purchase race, but there were fraudulent transactions using the system, and those who pre-bought got priority.

Later, the management switched to a lottery via the Discord app.

Discord is an app where people gather around specific genres to receive management announcements and exchange information, and it seems the lottery was targeted at active participants.

However, such a fast-purchase race inevitably involves bot use, making it difficult for ordinary people to succeed. This is especially true for super brands like Gucci that are drawing attention...

There are still challenges to be addressed here.

NFTAlthough the overall crypto market has fallen, celebrities and others continue to attract attention.

As an Ethereum use case,NFThas spread explosively; who would have predicted this? Ethereum founder Vitalik himself said he was surprised.

Around the same time, Paris Hilton released anNFTafter allegedly spending six months creating it, and because the price was low, I tried buying it as well.