Crypto market analysis [May 10]
Cryptocurrency Practical Investment Article May 10
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＊In the Magazine’s
Q&Asection, we will introduce a portion.
Here is a ranking of domestic and overseas exchanges I choose
↓↓
https://bitcoin-newstart.com/bitcoin-account
【5th place in Magmag’s Magazine Awards】
In 2020, the major magazine site
Magmag announced the Magazine Awards
and we were able to win a prize.
（Reference）5th place in Magmag’s cryptocurrency magazine in 2020 for asset management!!
※Magmag distribution has currently ended
and this article has been transitioned.
https://bitcoin-newstart.com/2020magmag
【Cryptocurrency Market Analysis】
Price movements of cryptocurrencies since last week
(one week) are summarized as follows
Display: current price (change from one week ago)
Bitcoin4,140,000 yen(-18％）
Ethereum315,000 yen(-15%）
Binance Coin42,000 yen(-16％）
Ripple68 yen（-14％）
Solana9,400 yen(-17%)
Cardano89 yen（-12%）
Polkadot1,570 yen（-20%）
Avalanche 6,400 yen(-19%)
Uniswap840 yen（-6%）
ICP 1,470 yen（-13％）
Bitcoin had stood around 5,000,000 yen, but5month5day saw a significant drop, recording five consecutive days of negative performance.
Bitcoin chart
In last week’s article, I mentioned Bitcoin was in a range-bound market, but5month5day saw a sharp drop,5day formed a lower shadow line,BTCJPY is currently around the 2020 year-end peak of30-million-yen level and has rebounded once.
The lowest price this year is1month’s375 million yen.
However, not in yen,BTCin dollar terms (USD) has unfortunately fallen below this year’s low.
This is because the yen has weakened, reducing its value, so compared with the dollar, Bitcoin’s value appears higher.
Therefore, those who hold Bitcoin can benefit when exchanging into yen (due to the yen losing value).
Now, let’s look at the Bitcoin-dollar chart.
Bitcoin-dollar chart
Bitcoin-dollar has fallen below this year’s January low in this downturn (as seen in the chart’s red circle).
And it has fallen further to the price range from last year’s5month to8month.
Even so, last year from this price, it rose to the peak of700 ten-thousand yen by the year-end...
However, I think the current market conditions are unfavorable.
With the entire financial market downturn, the cryptocurrency bubble that began in late 2020 does not seem likely to last long, in my personal view.
I plan to be neutral for a while and wait for the market to settle.
Since last year, in 2021, I still have the financial strength to repurchase, so I intend to assess the market and buy promising projects.
Prices are down, but it’s important to understand which directions projects will take in the future.
If you only watch the price, surviving may be difficult.
【Ethereum’s Strength】
I will compare Ethereum and Bitcoin.
Chart
The chart above is five years of data.
From this, it is clear that early on, Ethereum outperformed Bitcoin in price.
However, afterwards Ethereum rose more than Bitcoin in price (the chart’s decline suggests Ethereum’s price rose significantly).
In a down market like this, Bitcoin typically declines less because it has the largest market cap, but for some reason, the chart shows it hasn’t risen much.
This indicates that Ethereum and Bitcoin have fallen by roughly the same amount.
Here I feel Ethereum’s potential is high.
Regarding Ethereum, cheaper fees and faster transactions are provided byL2 (Layer 2) projects that may emerge.
Indeed, some projects are issuing their own currencies.
【El Salvador buys Bitcoin】
A small Central American country, El Salvador, has purchased Bitcoin.
ーー---
President Nayib Bukele of El SalvadorNayib Bukeleannounced on10th day on Twitter that he had added to his holdings, stating that he had “500BTC purchased for an average price30,744 to dollar-cost average (DCA).”
This time,1月22日以来の買い増しとなる。Previously, the average price was36,600 dollars for410BTC purchased. Including this purchase, El Salvador’s total Bitcoin holdings have risen to2,301BTC.
Bitcoin dropped sharply on the9th, falling by more than-8% from the previous day. It briefly fell to30,000 dollars.
ーー---
Buying during such a selling climax market is a very skilled approach.
As I’ve said before, this timing is likely backed by professional investors.
If you think buying Bitcoin at any time leads to losses or you cannot buy well, consider El Salvador’s purchases and examine why they bought at that moment.
Rather than buying blindly, following El Salvador’s example may be a better approach, though…
【Government meandering】
WebThere are discussions lately about three-country strategy.
Previously, wealthier individuals were targeted for higher taxation to redistribute wealth to ordinary people.
But recently, in the UK, there were appeals to overseas investors to “invest with Kishida.”
If wealth is distributed to the general public but the country cannot earn, the wealthy and companies will move overseas.
With a declining birthrate and fewer workers, wages not rising and prices rising, who would buy a currency of such a country with little appeal?
Under a government that only thinks about taking taxes, innovation is hindered, which ultimately tightens the country’s own neck.
The results should already be evident.
From this, I believe it is important for individuals to become self-reliant and build wealth with a global perspective.
