Cryptocurrency Market Analysis [January 17]
Practical Cryptocurrency Investment Article January 17
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【Cryptocurrency Market Analysis】
We summarize the price fluctuations of cryptocurrencies over the
past week (one week) as follows
Summary: Current price compared to one week ago
Bitcoin227ten thousand yen (4％）
Ethereum174000yen(10%）
Binance Coin36000yen(12％）
Ripple46yen（-％）
Solana2100yen(43%)
Cardano42yen（25%）
Polkadot640yen（10%）
Avalanche 1600yen(11%)
Uniswap760yen（9%）
Bitcoin moved in a nearly sideways pattern from last week with no major moves. The market is quiet.
Bitcoin daily chart (USD)
From June 20226In a range that has been maintained since June 2022 (the area boxed by the red horizontal line), Bitcoin fell below the lower bound of the range—the price at this year’s lowest—triggered by the collapse of FTX.FTXThen, in early January, seven straight bullish days occurred, breaking above the short-term range and reclaiming 20,000 dollars. (It is said to be due to the stabilization of US consumer price index.)
Later, in early January, there was a strong single-week upsurge.
Even the milestone price of 20,000 dollars briefly dropped due to the FTX collapse, but has since recovered to that level.FTX.
Whether this will continue as a range or move up or down is not clear, but some experts have long believed that the bottom would be around year-end and New Year’s.
Personally, I think a rebound from the COVID-19 shock in 2020 would be easier to understand, but we shall see.
The weekly chart analysis is as follows.
Weekly chart
・At the end of 2017, the all-time high price was first broken below this year.
・Still below the 200-day moving average (orange line)
situation remains.
On the weekly chart, price has returned to the previous range, but the 200-day moving average (orange line) has not yet broken above.
Cryptocurrency market capitalization near 1 trillion dollars, institutional buy-in is limited
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In the cryptocurrency market, Bitcoin is down 0.52% from the previous day to 21,079 dollars
The rise is attributed to expectations that monetary policy will ease due to weak macro data and low valuations, and reports that large-scale buyers called “whales” are increasing their purchasing interest reported.
Among individual coins, Aptos (APT) surged 67.2% from last week and 100% from last month. Aptos is a Layer-1 blockchain focusing on safety and scalability, and is known for having a former developer of Diem (formerly Libra), which Facebook had been developing, involved in its creation
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News that the cryptocurrency market cap recovered to the milestone of 1 trillion dollars (1300 trillion yen).
This time, institutions are said to be cautious, but even so, Bitcoin’s rebound uptrend is technically pleasing to see.
Attention is now on the latest US interest rate announcement, and it is expected to clarify the outlook further.
This article also introducesAPTOSas a major new force.APTOSlast year, they distributed currency for free to users who had traded APTOS, and I myself received about 120,000 yen.
Even in this winter market, that level of capital strength persists.
They are also raising large funds from a fund.
Related articles
https://www.neweconomy.jp/posts/247153
APTOSandSUIare major new players.
“Market recovery will not be V-shaped but U-shaped” Bitwise forecasts for 2023 crypto industry
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US crypto asset investment company Bitwise on the 11th released 10 predictions for the 2023 crypto market in a letter to investors
◯ Ultimately, the recovery will be “U-shaped” rather than the previous COVID-19 shock’s “V-shaped,” with the next bull market being the largest in history
◯ “Faster and cheaper transactions” will become a reality in 2023
Ethereum upgrades (EIP-4844) and progress in layer-2 solutions will reduce the cost of gas for Ethereum by more than 1,000%
◯ The crypto network will not only outperform payment networks like Visa but will expand uses beyond financial transactions to gaming and social networks. For example, if posting costs become almost free, a safe, fair, and decentralized “Twitter” could be realized
◯ The Shanghai upgrade for Ethereum, expected around March this year, will enable withdrawals of staked ETH
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Here are the highlights. It’s a very interesting article.
First, the market recovery is described as a U-shaped recovery, though the bull market is said to be the largest ever. For crypto investors, this suggests a matured market may still pull back more than expected. The Bitcoin halving cycle, occurring every four years, often drives substantial price increases, which may be one reason for a rebound.
Regarding Ethereum, it is expected that in 2023 fees will drop and processing speed will increase as L2 solutions mature. Once this environment is in place, transactions within the Ethereum ecosystem will become more convenient, and decentralized exchanges like Uniswap will gain momentum beyond traditional exchanges. From a single wallet, one can buy and sell NFTs and various currencies with less hassle and greater convenience.
L2What criteria will investors use to select assets as this sector grows?
Recently, Captain Tsubasa, a blockchain game, was released and attracted attention (though there were issues). As more such blockchain use cases come, and fees are reduced, greater user inflows and app development are expected.
Lastly, regarding Ethereum staking:POSWith Ethereum’s transition to proof-of-stake, one can earn interest through staking. Previously, staking required 32 ETH and could not be withdrawn for a time; now, staking is finally becoming withdrawable, allowing free deposit and withdrawal. Large numbers of investors staking Ethereum as a mid- to long-term asset will support price stability, and the impact of the reduced issuance due to POS will be closely watched.
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(This article has been distributed since 2016)
