Cryptocurrency market analysis [December 20]
Practical Investment Article on Cryptocurrency December 18
Dear subscribers
If you have topics you want us to cover or questions, please contact us.
Q&A
Q&AWe will introduce some in the column.
【5th place in Makumagu Mail Magazine Awards】
From 2020, at the major mail magazine site
Makumagu, the Mail Magazine Awards were announced
and we were able to win an award.
※Currently Makumagu's distribution has ended
We have transitioned to this article.
【Cryptocurrency Market Analysis】
The price fluctuation of cryptocurrencies since last week (one week)
is summarized as follows
Display: Current price (change from one week ago)
Bitcoin22,200,000 yen (-6％）
Ethereum160,000 yen(-8%）
Binance Coin33,000 yen(-13％）
Ripple45 yen（-14％）
Solana1,600 yen(-10%)
Cardano34 yen（-19%）
Polkadot610 yen（-14%）
Avalanche 1600 yen(-11%)
Uniswap700 yen（-13%）
Bitcoin has fallen in price since last week.
Bitcoin daily chart (USD)
From 20226 months, Bitcoin traded within a range (the area boxed by the red horizontal lines) and then broke below the lower end of the range—the lowest price of the year—triggered by the collapse of FTX.FTXnews.
The current price is moving within the next lower range.
With this drop, it has fallen to the lower price band of the range that began in mid-November.
And as a characteristic of a bear market, the price range is relatively narrow.
The weekly chart analysis is as follows.
Weekly chart
• It broke below the all-time high of the 2017 end of bubble for the first time this year.
• It remains below the 200-day moving average (orange line).
This situation continues.
There is little change in the daily and weekly charts compared to last week.
From the chart, what is sustaining the current price is that the peak of the 2017 year-end bubble is seen as a single key point.2017 year-end peak acts as a reference point.
The bottom of the cryptocurrency market’s decline is often said to be around year-end and New Year.
Other cryptocurrencies besides Bitcoin have shown declines exceeding 10%.
Although news about Binance’s opaque funds and possible indictment by the U.S. has occurred, and there are various negative headlines, overall not only Binance’s coinBNB is falling.
BinanceCZ said, “The industry will continue to face difficult times for the next few months”
ーーー
Champa Zhao, CEO of major crypto exchange Binance, told employees that difficult times would continue for the next few months.
Recently, Reuters reported that the U.S. Department of Justice might indict Binance for money laundering and sanctions violations. While the risk of customer asset misappropriation and insolvency like FTX is considered low, outflow of customer funds has increased.
CZ reported on the 14th that withdrawals had stabilized. He said the previous day's withdrawals were not at their peak and not in the top five. He noted withdrawals were higher during the Terra collapse and FTX failure, and deposits had started to resume.
ーーー
BinanceThe turmoil seems to have calmed a little.
Like me, from these news sources,BinanceI have moved a certain portion of cryptocurrency to my wallet. (Most of it was originally stored in a personal crypto wallet)
I still have a bit left with Binance.
During the bubble, I kept some assets on the exchange to secure profits, but given the current situation, I don’t think there is much need to keep them there.
RecentlyBinancehas shown strong financial capacity, such as acquiring the crypto company Voyager for 140 billion yen.
FTX issues also present,Binancefaced discussions about lack of fund transparency recently. While it’s understandable to worry, investors should monitor closely while increasing risk management.
UNHCRUNHCR uses stablecoin USDC for aid
ーーーー
Stellar Development Foundation (SDF), which develops the Stellar cryptocurrency, announced a partnership with the United Nations High Commissioner for Refugees (UNHCR) on the 15th
to distribute cash assistance through a test program that uses the stablecoin USDCoin (USDC) on the Stellar network for Ukrainians affected by Russia’s invasion.A stablecoindistributed as USDCoin (USDC). The USDC sent to wallets can be redeemed for dollars, euros, or local currency at over 4,500 MoneyGram locations in Ukraine.
Leveraging the portability of cryptocurrency (USDC) enables domestic and cross-border movement and can offer greater safety than carrying cash.
ーーーーー
Wonderful initiative.
This is a prime example of rapid humanitarian aid using the advantages of cryptocurrency.
This timeUNHCRpartners with Stellar.
Stellar is often grouped with Ripple, but this time the transfer will use Stellar’s network to move funds tied to the dollar, not Stellar’s currencyXLM, but USDC on the Stellar network.
Stellar’s network offers lower fees than Ethereum, which is likely why Stellar was chosen this time.
(Although Ethereum is major, there was no particular advantage to choosing Ethereum here)
USDC is a dollar-linked cryptocurrency issued by CircleUSDC and is among the top cryptocurrencies by market capitalization, widely traded worldwide.
A dollar-linked stablecoin with low fees and fast funding, this is exactly the right kind of currency for such aid.
G20 prioritizes agreement on cryptocurrency policy
ーーーーー
Ajay Seth, Deputy Secretary of the Department of Finance for India, on the 14th highlighted policy approaches to crypto assets as a priority issue at the G20.
He also noted that the interlinked nature of crypto businesses means impacts can propagate. The discussion assumes the cascade of debt defaults that occurred in 2022 within the crypto markets.
Since May this year, after the old Terra ecosystem collapse, Celsius and Three Arrows Capital (3AC) went bankrupt in succession. In November, major exchange FTX filed for bankruptcy, causing ripples again through the industry.
ーーーーー
This is precisely a hot topic the cryptocurrency market is facing now.
FTX and other cryptocurrency exchanges caused large investor losses and market crashes when crypto companies failed. (The rise last year did not occur, but as the bubble burst, reckless management was exposed)
I believe such regulation is important for the cryptocurrency market first and foremost.
※Paid subscription sections provide more in-depth stock analyses. Even beyond Bitcoin and Ethereum, we aim to go deeper into investments. If you want to understand future trends in the cryptocurrency market and catch the wave, please consider subscribing. Continuous research is crucial.
(This article has been distributed since 2016)
