Cryptocurrency Market Analysis [August 16]

Cryptocurrency Practical Investment Article August 16

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【Cryptocurrency Market Analysis】

The price movements of cryptocurrencies since last week

over the past week are summarized as follows

Display: current price (change from one week ago)

Bitcoin322万円 (％)

Ethereum255000円(7%）

Binance Coin43000円(-％）

Ripple50円（-％）

Solana5900円(4%)

Cardano75円（4%）

Polkadot1200円（-5%）

Avalanche 3700円(-%)

Uniswap1140円（-4%）

ICP　1000円（　％）

Bitcoin has been gradually rising from around310万円 to current320万円 level.

Bitcoin daily chart (USD)

In the daily chart,6months have seen a short-term gradual rise in lows.

The notable 20,000 dollars has clearly broken higher (current price is around 24,000 dollars).

From the chart, the short-term (months) uptrend is visible, but at a price of 25,000 dollars the price has repeatedly been bounced off, which can be seen in the chart.

This level seems not easy to achieve.

Next, let’s look at the weekly chart (USD).

We have conducted analyses like the following so far.

・From the late-2017 bubble peak, there has been a rebound, with a short-term uptrend continuing upward.

・The price sits just above the 200-day moving average (orange line); whether the price can break above this moving average in the future is a major point.

However, this week the price appears to have started above the 200-day moving average.

This gives the impression on the chart that it is turning upward.

【Expectations for the Ethereum Merge】

The major Ethereum upgrade, the Merge, is finally approaching next month.

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Merge means that the current Proof-of-Work (PoW) Ethereum mainnet protocol will merge with the Proof-of-Stake (PoS) beacon chain (Beacon Chain),PoS and continue as such.

https://www.coindeskjapan.com/156425/

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The concrete date seems to be September 15 or 16.

What is driving the current uptrend in the crypto market is said to be the expectation of the Ethereum Merge.

After the Merge, the annual supply of Ethereum is expected to become even more limited, making price rises easier, but since the current price rise is due to expectations, there is a possibility that prices may fall around the Merge (not due to the actual effects of the Merge).

Also, as I mentioned last week, after the Merge Ethereum may fork, creating another currencyPOWETHthat is attracting attention.

POWETHis still Ethereum of today (before the Merge),POWis a situation where miners are mining to earn profits.

Miners, since profits will decrease after the Merge,POWETHwill remain to continue earning profits.

However, what the Ethereum Foundation desires is a more rational Ethereum ecosystem, and it goes without saying that a newPOSEthereum on the main chain is the goal.

POWETHremains of interest as to how it will survive.

【US Government Bans Tornado Cash】

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The US Treasury Department on8 August8thmixing service“Tornado Cash”Tronado Cash was banned in full. All Americans are forbidden to interact with this open-source protocol, which will have broad implications for the crypto world.

Tornado Cash is an open-source project that makes it possible to hide transaction histories from the public. The U.S. government claims this service has been used since2019 by, among others, North Korean hackers, to launder funds obtained illicitly worth over tens of billions of dollars.

https://www.coindeskjapan.com/157289/?utm_source=twitter&utm_medium=ifttt

ーーーーー

Tornado Cash has been a topic of discussion since last week

Cryptocurrencies themselves are built on networks without government control, but there are opinions that governments do not always need to be involved to this extent, and that developers could be arrested for overreach.

As a model of highly decentralized cryptocurrency, it is thought-provoking; personally, what concerns me is the U.S. government's view that funds are being laundered to Eastern countries like North Korea. (There have been reports that North Korea has long hacked for cryptocurrency.)

If this is true, using the stolen money for military funding would heighten threats and should be avoided politically. Moreover, Japan is under U.S. protection. If missiles deployed into the Sea of Japan were funded by illicit cryptocurrency, that would be alarming (neighboring countries include China, North Korea, Russia, etc.).

It is indeed a very difficult issue, but opinions of overreach from a political standpoint are thought-provoking.

In a world without complete equality, it may be necessary to increase decentralization under appropriate regulation.