Cryptocurrency Market Analysis [May 24]

Practical Cryptocurrency Investment Article May 24

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Ranking of domestic and international exchanges I choose

is here↓↓

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

【Ranked 5th in MagMag Magazine Awards】

In 2020, the major newsletter site

MagMag announced its newsletter awards

and I was able to win a prize.

（Reference）5th place in MagMag’s 2020 cryptocurrency newsletter assets management category!!

※Currently MagMag’s distribution has ended

and has transitioned to this article.

https://bitcoin-newstart.com/2020magmag

【Cryptocurrency Market Analysis】

The price movement of cryptocurrencies since last week

(one week) is summarized as follows

Display: current price (change from one week ago)

Bitcoin370万円 (-4％)

Ethereum250000円(-4%）

Binance Coin40000円(7％）Ripple56円（-13％）Solana6300円(-9%)Cardano65円（-9%）Polkadot1250円（-9%）Avalanche 3650円(-13%)Uniswap700円（10%）ICP985円（-6％）Bitcoin was around 4,000,000 yen last week, but since then its price has fallen,5mid-month low370万円 in price.The current Bitcoin price is the lowest of the year, and from last year's5May to7month price range.Last year, Bitcoin showed a strong surge to its peak from this price, but currently together with the stock market, financial tightening is pulling funds out of the market, so this situation may continue for a while.Bitcoin chartThe current price is5from mid-May the price range is gradually converging toward around360million yen.※The reason is that the recent price range (candlestick length) is smallAs of yesterday, Bitcoin recorded 8 consecutive days of downward movement.（1 day of price decrease continues for 8 days）Also, the fear index for Bitcoin is very low, around 10 to 12.The decline in the cryptocurrency market, combined with monetary tightening, is heavily related to the price gap of UST tied to the dollar and the sharp decline of related currencies such as LUNA.USTRegulations relating to stablecoins are likely to emerge in the future.I do not worry about Bitcoin’s price dropping, because there is no inherent problem with Bitcoin itself.【Will the falling price of renewable energy affect Bitcoin?】“Crypto assets (cryptocurrencies) have long been criticized for their impact on the environment. They consume a huge amount of electricity in the process of approving transactions, and environmental groups have criticized them as a source of carbon dioxide (CO2) emissions. However, with the spread of renewable energy, the situation seems to be changing.”Nikkei Asiahttps://www.nikkei.com/article/DGXZQOCD112LA0R10C22A5000000/％）

Ripple56円（-13％）

Solana6300円(-9%)

Cardano65円（-9%）

Polkadot1250円（-9%）

Avalanche 3650円(-13%)

Uniswap700円（10%）

ICP　985円（-6％）

Bitcoin was around 4,000,000 yen last week, but since then its price has fallen,5mid-month low370万円 in price.

The current Bitcoin price is the lowest of the year, and from last year's5May to7month price range.

Last year, Bitcoin showed a strong surge to its peak from this price, but currently together with the stock market, financial tightening is pulling funds out of the market, so this situation may continue for a while.

Bitcoin chart

The current price is5from mid-May the price range is gradually converging toward around360million yen.

※The reason is that the recent price range (candlestick length) is small

As of yesterday, Bitcoin recorded 8 consecutive days of downward movement.（1 day of price decrease continues for 8 days）

Also, the fear index for Bitcoin is very low, around 10 to 12.

The decline in the cryptocurrency market, combined with monetary tightening, is heavily related to the price gap of UST tied to the dollar and the sharp decline of related currencies such as LUNA.

USTRegulations relating to stablecoins are likely to emerge in the future.

I do not worry about Bitcoin’s price dropping, because there is no inherent problem with Bitcoin itself.

【Will the falling price of renewable energy affect Bitcoin?】

“Crypto assets (cryptocurrencies) have long been criticized for their impact on the environment. They consume a huge amount of electricity in the process of approving transactions, and environmental groups have criticized them as a source of carbon dioxide (CO2) emissions. However, with the spread of renewable energy, the situation seems to be changing.”

Nikkei Asia

https://www.nikkei.com/article/DGXZQOCD112LA0R10C22A5000000/

Bitcoin is often criticized for consuming large amounts of electricity, but it is not compared to the electricity used by banks’ data servers that handle transfers...

Perhaps because Bitcoin has transparent transactions and its energy usage is disclosed in real time online, surrounding responses are overly simplistic.

Since last year’s China mining withdrawal, it is said that the use of renewable energy related to mining has increased.

However, recently there are reports that China is secretly continuing mining, and it ranks second after the United States.

In the United States, efforts to use renewable energy for Bitcoin mining have begun, and as its share increases, I feel there is a potential for further increasing Bitcoin’s value in the future.

Even so, I think it’s a good thing that China withdrew from mining last year, as it made the network more decentralized.

（Reference: Which consumes more electricity, Bitcoin or traditional banks and gold mining?）

https://bitcoin-newstart.com/bitcoin-bank-co2

【El Salvador’s Crisis?】

While cryptocurrency prices are plunging,2022Year5Month16day, various media such as The Wall Street Journal reported serious effects on the country’s economy.

To circulate Bitcoin as legal tender, the El Salvador government holds a large amount of Bitcoin.

The value of the Bitcoin held by the country1billion (about127billion yen) worth of Bitcoin has fallen to two-thirds, raising the likelihood that the country’s government bonds could default.

https://ascii.jp/limit/group/ida/elem/000/004/092/4092151/

Does El Salvador buy Bitcoin for short-term trading in the first place?

So do they accumulate more Bitcoin each time it falls?

Personally, I feel a professional investor is backing that timing behind the scenes.

El SalvadorIMFis aiming to achieve independence from loans, etc.

From the perspective of an ordinary salaried worker who relies on a company and wavers with its performance, El Salvador seems to be trying to operate assets that will yield long-term value and diversify risk to achieve economic independence.

Bitcoin itself is not suitable for everyday settlement as a means of payment when price fluctuations occur.

However, you could hold Bitcoin as a future hedge, use it to increase assets, buy goods if Bitcoin’s price rises and profits, and accumulate as an asset when Bitcoin falls.

As for remittances from abroad, you could temporarily convert to Bitcoin to send, and then convert to the local currency (dollar in El Salvador) in the recipient country, greatly reducing remittance fees.

Such uses are possible.

Since the local currency is already the US dollar, adopting Bitcoin as another currency asset class would be a good way to diversify future risk, and if Bitcoin someday exceeds 10 million yen, the country could become wealthier as a nation.

Investors who have held Bitcoin since earlier years (around 2014) are already making substantial profits at current prices, and there is nothing particularly problematic about it.

If El Salvador continues to operate in this manner, it may move closer to becoming a more autonomous nation.