Cryptocurrency Market Analysis [January 10]
Practical Cryptocurrency Investment Article - January 10
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【Cryptocurrency Market Analysis】
The price fluctuations of cryptocurrencies since last week
are summarized as follows (one week)
as of now: current price vs. one week ago
Bitcoin227万円 (4％)
Ethereum174000円(10%）
Binance Coin36000円(12％）
Ripple46円（-％）
Solana2100円(43%)
Cardano42円（25%）
Polkadot640円（10%）
Avalanche 1600円(11%)
Uniswap760円（9%）
Bitcoin remained almost flat compared to last week's price, with no major moves. The market remains quiet.
Bitcoin daily chart (USD)
(Same analysis as last week)
From 20226Month, Bitcoin traded within a range (illustrated by the red horizontal lines). The lower bound of the range, which was the lowest price this year, broke below when FTX collapsed news acted as a catalyst.FTX The price moved down through the lower end.
The current price is moving within the next lower-range band.
Recently, Bitcoin and other currencies have shown rebounds, but even on the daily chart Bitcoin is still within the current range.
However, prices are approaching the upper boundary of this range.
In other currencies, Solana andADA have surged by more than 20%.
Regarding Solana, after a recent big sell-off, and with statements from Ethereum founder Vitalik Buterin, it has rebounded strongly. The downside seems to have halted.
The weekly chart analysis is as follows.
Weekly chart
- It fell below the peak price of the 2017 bubble for the first time this year.
- It remains below the 200-day moving average (orange line).
As a result, even though there has been recent upward movement, the weekly chart does not show a significant change.
Ethereum next update in March
The next Ethereum update will occur in March.
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Additionally, to focus on withdrawal capabilities for Ethereum (ETH) and to avoid delaying the Shanghai implementation, the Ethereum Virtual Machine Object Format (EOF) and other implementations were agreed to be deprioritized
In the Shanghai upgrade, the Ethereum staking contracts will have 15.6 million ETH (about 2.6 trillion yen at the time of writing) become withdrawable, along with staking rewards
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Ethereum staking was previously done from 32ETH, but withdrawal is planned for this March.
As staking has yielded profits, there may be some selling pressure in the current market.
Many investors view Ethereum as a long-term hold, and staking Ethereum is very attractive (depending on Japanese tax rules, there are cases where the average-cost method can free you; those who have held Ethereum for a long time should check).
Also, future updates to speed up transaction processing for Ethereum are planned, so all eyes will remain on it.
Square Enix’s New Year’s Message – Pushing Blockchain Games
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Square Enix Holdings President Yōsuke Matsuda announced his New Year’s message on the 1st. He stated that blockchain games would be further developed.
Among core business developments, emphasis is placed on blockchain-based games, with active investment and business development. He also said that in 2023 there would be new game releases and investments in domestic and international companies, as follows
https://coinpost.jp/?p=420454#038;from=in_article00
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Said to be well-known for investing in metaverse-related projects such as sandbox games, Square Enix, a major domestic game maker, continues to be famous for such investments.
With plans to promote blockchain games in the future,NFTis also closely related, so this is worth watching.
I am not very familiar with gaming stocks, but it is a trend worth noting.
Mastercard MusicNFTAccelerator announced, adopting Polygon
ーーー
Mastercard announced on the 6th a Web3 (decentralized web) development program for music artists, the “Mastercard Artist Accelerator.”Polygon (MATIC) will be adopted as the underlying blockchain
The Mastercard Artist Accelerator will provide five early-career artists—musicians, DJs, producers—with tools, skills, and access to carve their own path in the digital economy
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Mastercard previously held NFT-related patents, and this marks the launch of such services.
Mastercard is doing a lot of things.
Also personally noteworthy, Polygon’s blockchain is being adopted here as well.
Polygonis increasingly being adopted by major companies.
coingate 2022 Increase in Cryptocurrency Payments
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CoinGate, a crypto payment processor, announced on the 4th that cryptocurrency payments in e-commerce surged in 2022
Among the 70+ cryptocurrencies handled by CoinGate,Bitcoin (BTC) accounted for 48% of usage—the largest share—but this was a 7.6% decrease from the previous year
Possibly due to market instability, the value of the US dollar-linked stablecoinsTeaser“Tether (USDT)
ーーー
The year 2022 was a year of significant cryptocurrency price declines, but news reported that crypto payments increased.
As the crypto market fell, many people temporarily shifted into USDT, a dollar-pegged cryptocurrency, and used it for payments.USDT was widely used for settlements, and this pattern seems common.
Bitcoin rose in value (as in 2021) →USDT was exchanged → held, and used for payments when needed
This seems to be the typical flow.
Bitcoin holdings and payments are increasingly reported in news from South America and Africa.
Binance accounts for 90% of Bitcoin trading volume
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As of December 28, Binance accounted for 92% of the spot Bitcoin trading volume. Binance had eliminated trading fees for Bitcoin spot pairs last summer, which contributed to the increased trading volume
Last year, Binance also completed an acquisition. In November, it announced the acquisition of Japanese exchange Sakura Exchange Bitcoin, re-entering the Japanese market
On December 13, about 790 billion yen (60 billion USD) of customer funds were withdrawn from Binance. The fact that this was processed without issue suggests Binance passed the withdrawal-test
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Amazing—the fact that Binance accounts for 90% of spot Bitcoin trades is remarkable.
Last year, Binance faced scrutiny over publishing its held currencies (proof of reserves was opaque), causing many users to move funds away, which drew attention.
Nevertheless, Binance controlled 90% of spot Bitcoin trading and could withdraw funds without issues (I personally withdrew some funds and had no problems getting them out quickly).
Additionally, since Binance re-entered the Japanese market, new accounts with Binance in overseas markets have become unavailable for some users (this is a big downside for those who would use overseas options).
Binance expects ongoing regulatory challenges in the crypto market, but remains optimistic in the mid-to-long term.
