Cryptocurrency Market Analysis [February 7]
Practical Investment Article on Cryptocurrency - February 7
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【Cryptocurrency Market Analysis】
The price movements of cryptocurrencies since last week
(one week) are summarized as follows
Summary: current price (change from one week ago)
Bitcoin303万–yen (2％）
Ethereum216000円(5%）
Binance Coin43000円(9％）
Ripple52円（1％）
Solana3000円(-%)
Cardano51円（5%）
Polkadot880円（9%）
Avalanche 2400円(3%)
Uniswap903円（6%）
Bitcoin has been largely range-bound from last week's price, and many other cryptocurrencies are roughly at the price from a week ago.
Bitcoin Daily Chart (USD)
Last year11月FTX (exchange) collapse news led to a sharp drop in Bitcoin price,
After that, in early January there were seven consecutive bullish days, breaking above the short-term range and recovering to around 20,000 dollars. (It is said to be due to the U.S. CPI cooling down.)
Two weeks ago the price rose to 3,000,000 yen, and now it remains in the same price range as then.
Current considerations
○Target price is $25,000
○Above the 200-day moving average and breaking upward
This suggests the upside to $25,000 may be challenging.
Analyses for the weekly chart are as follows.
Weekly Chart
• It fell below the peak price of the 2017- end bubble for the first time this year.
• It remains below the 200-day moving average (orange line).
After a large rise last week, it has declined and seems to have returned to the price from about a week ago.
The 200-day moving average is within reach.
Whether it remains in the price range below 25,000 dollars or breaks higher remains to be seen.
There are data showing that Bitcoin tends to rise sharply in the first quarter, but what will happen?
VISA is testing large-scale settlement using USDC
Payment giantVisa’s Crypto Assets (Digital Currency) division headCuy Sheffieldstated5days ago, thatStarkWare Sessions 2023event, and that the company is testing settlement of the stablecoin “ETH) blockchainUSDC” on the Ethereum (
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VISA has long been testing a USD-pegged cryptocurrency on Ethereum.
However, the existing Ethereum network (L1) faces issues with fees and transaction speeds.
L2 processing is also being considered.
L2 With that in mind,Polygon has been adopted as a chain for NFT use by Coca-Cola and Starbucks since last year, and choosing which chain to use for such payment systems could influence demand for that token’s future.
In the article,starkware eventsVISA participated in...
In any case, the Ethereum ecosystem remains central, so investors who see ETH as a long-term asset are likely to increase (and perhaps already have).
Bank of England and the Treasury: ‘Digital Pound (CBDC) Likely to be Needed
The Bank of England (BOE) and the British Treasury have indicated that a digital pound is likely to be needed in the future and are actively pursuing the introduction of a central bank digital currency (CBDC).
CBDC introduction would raise concerns about government surveillance of personal spending, but they note that the UK’s CBDC model is wholesale-focused for financial institutions, and individual wallets would not directly connect to the central bank; rather, the CBDC would be held in intermediary banks.
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CBDC is closely related to the above topic of testing USDC with digital currency by VISA.
Moreover, the British finance minister also commented that “Bitcoin currently does not have a large impact on the economy, but that era may come soon.” indicating its growing influence.
Global city ranking leading the cryptocurrency space, London tops the listRecap
英国の暗号資産（仮想通貨）税務関連サービス企業Recapによると1月26日、仮想通貨・ブロックチェーンの導入環境が整っている世界の都市ランキングを公開、英ロンドンが1位、アラブ首長国連邦のドバイが2位、米ニューヨークが3位、シンガポールが4位、米ロサンゼルスが5位という結果
In London, the leading city,2,173 people were engaged in cryptocurrency-related work, the highest among all cities. Cryptocurrencies-related companies exceed800 firms.
In the UK last year10月, Rishi Sunak, who is favorable to cryptocurrency, became Prime Minister. When he served as Chancellor of the Exchequer, he aimed to position the UK as a “hub for cryptocurrency technology,” and the UK House of Commons also passed an amendment to regulate crypto as a financial instrument under the Financial Services and Markets Bill in October, and this bill is currently being debated in the House of Lords.
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As such, widespread use of cryptocurrency is likely to hinge on the country’s tax system.
When researching UK taxation,
・If considered a business activity, income tax (top rate45%) applies.
・If considered personal investment, capital gains tax (top rate20%) applies.
・Losses from crypto assets can be carried forward for4 years
As expected, this differs from Japan’s progressive tax system (top rate).
Recently, the government is also taking steps to improve tax treatment for web3-based ventures, but the pace has been slow and the overall agility is lacking.
Thus, countries that move first often ride the wave effectively.
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(This article has been distributed since 2016)
