Virtual Currency Market Analysis [June 14]
Practical Investment Article on Cryptocurrency - June 14
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【Cryptocurrency Market Analysis】
The price changes of cryptocurrencies since last week
are summarized as follows for the week
Display: Current price (change from one week ago)
Bitcoin2,940,000 yen (-29％）
Ethereum156,887 yen(-36%）
Binance Coin30,000 yen(-24％）
Ripple42 yen（-22％）
Solana3,900 yen(-31%)
Cardano65 yen（-19%）
Polkadot970 yen（-23%）
Avalanche 2200 yen(-37%)
Uniswap500 yen（-31%）
ICP 750 yen（-26％）
Bitcoin has fallen sharply from last week’s 3.9 million yen and is now around 3.0 million yen.
Bitcoin Chart
Since May 10, Bitcoin has been moving in a range of 4.10 million yen to 3.60 million yen, but on June 13 the price broke downward sharply and is currently around the 3.0 million yen level.
Such price levels around 3,000,000 or 4,000,000 yen are known to be points where prices tend to stop frequently.
The current price is the same as the price in January 2021, which was the starting point of the previous bubble.
The United States continues to tighten by raising policy rates from the usual 0.25% to 0.5%, causing deflationary pressure on prices and a downturn in financial assets in stock and cryptocurrency markets.
Looking at the one-week crash rates of major currencies, Ethereum leads at -36%, followed by Avalanche -31%, and Bitcoin at -29%..
The trigger for this crash is said to be the liquidity crunch and the temporary withdrawal halt of Celsius, which provides lending (borrowing) services in DeFi.
In other words, DeFi has been significantly affected, particularly Ethereum.
As for Avalanche, it is unclear whether it is directly related to this crash, but previously the Terra Foundation had accumulated funds in Bitcoin and Avalanche, which may have some influence.
In any case, it is a pronounced and large decline.
Next, let’s look at Ethereum’s price.
Ethereum is currently around 160,000 yen, a price level from January to March 2021, and its price range is similar to Bitcoin’s level.
The 2017 bubble burst in 2018, and most cryptocurrencies fell by more than 90%.
Though the cryptocurrency market was thought to have matured since then and not fall as dramatically, this time many coins have already dropped more than 90% from their all-time highs in 2021.
【A Battle for Survival】
In other words, most investors who entered in 2021 are experiencing losses.
What I feel is that things you buy do not always rise, or always yield profits.
What you buy can be in the red in terms of unrealized losses.
Of course, when I entered, Bitcoin was around 100,000 yen and Ethereum around 10,000 yen, so I didn’t have much profit yet since I’ve held since then, but the more recent holdings are showing losses.
However, that does not mean there is no opportunity. The perspective of buying good things cheaply is an important aspect of economic activity.
And the recent Terra algorithmic stablecoin issue with USTUSTand the Celsius issue, among others, may be considered in a sense as a valuable lesson.
In the winter of the market, stricter regulations may advance and new assets may emerge as survivors.
