Cryptocurrency Market Analysis [May 3]

Practical Cryptocurrency Investment Article May 3

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【Cryptocurrency Market Analysis】

The price movements of cryptocurrencies since last week

are summarized as follows for the week

Display: Current price (change from one week ago)

Bitcoin5,000,000 yen (-4%)

Ethereum367,000 yen(-4.4%）

Binance Coin50,600 yen(-%)

Ripple80 yen（-10％）

Solana11,300 yen(-12%)

Cardano103 yen（-10%）

Polkadot1,944 yen（-16%）

Avalanche 7800 yen(-15%)

Uniswap910 yen（-18%）

ICP　1,600 yen（-18％）

Bitcoin was at the 5,000,000 yen level last week, so it can be said to be at the same price range now.

Bitcoin chart

Looking at the chart, Bitcoin’s price is within a short-term range of 4.8 million to 5.3 million yen.

There hasn’t been much movement recently.

However, besides Bitcoin, Ethereum, and Binance Coin, most other currencies have fallen by more than 10%, indicating a significant market decline.

Indeed, those who have long held Bitcoin and Ethereum as core assets may not suffer much damage.

Those who have invested mainly in cryptocurrencies that rise in value and own many coins other than Bitcoin or Ethereum have seen larger declines in assets.

Nevertheless, coins with lower market capitalization can rise more sharply, so it is important to consider individual asset situations and think about how to improve performance.

【Warren Buffett, the God of Stock Investing, Criticizes Bitcoin Again】

Recently, Buffett, who had been subdued in criticizing Bitcoin, has again criticized Bitcoin.

The content is

“It has no value”

“Even at $25, I wouldn’t buy it”

This is what he said.

https://jp.cointelegraph.com/news/buffett-back-bashing-bitcoin-claims-it-doesn-t-produce-anything

It is unclear what grounds he bases these statements on, but the value exists, which is why the current price is what it is.

Previously, in my view, Buffett, who is known for stock investing, criticizing Bitcoin could be a position to prevent funds from flowing out of the stock market.

He is regarded as the god of stock investing, so his influence is naturally large.

Currently, both cryptocurrency and stock prices are significantly down.

However, Bitcoin is increasingly being adopted as a practical asset by countries, such as Central Africa recently making Bitcoin legal tender, indicating growing real demand for Bitcoin.

This happens because the economy of those countries is unstable, and their currencies are unstable, so they seek something with more value.

Such developing-country movements could lead to Bitcoin having greater value in the future and potentially help improve national finances little by little.

Conversely, in advanced countries like Japan, many citizens hold their currency as a safe asset (a myth at this point), and the falling value of the yen and rising prices could make the country poorer.

Developing countries buy Bitcoin due to economic instability and higher risk management needs.

Buffett previouslyITstocks have also failed, but he appears to be quite conservative, clinging to traditional finance. It seems at times childish.

Nevertheless, Buffett’s investment company Berkshire Hathaway has already purchased cryptocurrency-related stocks, and in part his actions contradict his statements.

【Tesla’s Outlook on Bitcoin】

Tesla Motors, the world’s top market-cap car company, is famous for owning Bitcoin.

Elon Musk, the CEO of Tesla, is world’s richest man, but he has made a positive statement that Bitcoin has a long-term prospects.

This is because Bitcoin has a property that frees people and is not under government control.

Tesla plans not only to hold Bitcoin but also to mine Bitcoin using solar panels at its gigantic Gigafactory in Texas.

Mining yields Bitcoin as a reward, but going forward, rather than buying more Bitcoin, the move may be to support the Bitcoin network with environmentally friendly power and acquire Bitcoin.

Because Tesla owns the power grid, mining could become a major focus in the future.

Elon Musk’s view clashes with Buffett’s, but governments worldwide have printed a massive amount of currency in response to COVID-19, leading to inflation and rising prices.

Conversely, Bitcoin has a fixed supply and inflation resistance.

If Bitcoin gains more value in the future, it will be interesting to see how Buffett—who once criticized it—will be viewed.

Considering the current situation, is it enough to simply buy stocks to protect against currency depreciation?

【Fujimaki’s View on Yen Depreciation】

Former member of the Diet Fujimaki presents the following view on the current inflation.

ーーーーーーーーーー

“Dollar / Yen crash expected due to reasons”Theyen has such a clear market trend that, in my long market experience, I have never seen anything this clear. Asahi Shimbun stated that ① current account deficits seem to become normalized, ② the US-Japan interest rate differential will widen, ③ and the biggest reason is the likely start of “draining the dollars” from the FOMC meeting around the 3rd–4th.I anticipate a slow but very intense dollar grab war beginning. I have never witnessed such a large-scale withdrawal of money by a single factor. The Bank of Japan, among others, cannot raise rates or drain money. If withdrawals begin, government bond shortfalls will occur (

Leaving fiscal deficits untreated, postponing crises with ultra-loose monetary policy, and the advocates of MMT and aggressive fiscal spending have exacerbated the problem. The bill is enormous.

ーーーーーーーーー

Fujimaki has previously held views on hyperinflation of the Japanese yen.

Currently, those longstanding views are becoming evident in reality.

https://twitter.com/fujimaki_takesi/status/1521259153930473472