Cryptocurrency Market Analysis [March 14]
Practical Investment Articles on Cryptocurrencies, March 14
Dear Subscribers
If you have topics you’d like us to cover or questions, please contact us.
Q&A
Q&AWe will introduce some items in the corner.
【Won 5th place in Mag Mag Mag Magazine Award】
The big magazine site Mag Mag Mag announced the
Mag Magazine Award,
and we were able to win a prize.
※Currently Mag Mag Mag transmissions have ended
and have migrated to this article.
【Cryptocurrency Market Analysis】
The price fluctuations of cryptocurrencies from last week
over one week are summarized as follows
Summary: current price (change from one week ago)
※From this time onward, values are shown in dollars (since much information on cryptocurrencies comes from overseas, dollar notation is easier to express)
※1Dollar = 134 yen
Bitcoin26,000 dollars (17％)
Ethereum1,740 dollars(12%）
Binance Coin313 dollars(10％）
Ripple0.37 dollars（3％）
Solana21.5 dollars(6%)
Cardano0.36 dollars（9%）
Polkadot6.33 dollars（8%）
Avalanche 17.7 dollars(5%)
Uniswap6.3 dollars（0.7%）
Bitcoin Daily Chart (in dollars)
Last week, the major US bank Silicon Valley Bank collapsed, and concerns rose that it could trigger a Lehman-like crisis,2with Bitcoin dropping below 20,000 dollars, yet on the date of14the price recorded 26,000 dollars, an annual high.
Truly shocking...
It fell temporarily to 20,000 dollars due to bank collapses, but who would have predicted it would rebound to an annual high within a few days?
Current assessment:
○Target price is 28,000 dollars (the level of last May)
○Above the 200-day moving average
Bitcoin’s target price has long been 25,000 dollars, and it had repeatedly approached that level only to be knocked back each time; however, on the 14th it broke upward in one surge, briefly recording the year’s high of 26,000 dollars.
It is a dramatically unfolding scenario.
The weekly chart analysis is as follows.
Weekly chart
• End of 2017 bubble price first broke below this year
• Broke above the 200-day moving average (orange line)
The weekly chart has now finally broken above the 200-day moving average, which had not been breached before.
Whether a trend reversal will occur in the market that had been in a downtrend remains to be seen in future prices.
Starback’s NFT release
The coffee chain giantStarbucks has sold an NFT asStarbucks Odyssey. ThisNFT was issued on2023 year3 month9 dayPM12 o’clock (PST) from which sale started, and it was sold at1 per unit100 dollars. The blockchain used wasPolygon, and the collection is namedStarbucks Odyssey Siren Collection.
https://crypto-times.jp/news-starbucks-odyssey-siren-collection/
Amazing, isn’t it.
It was sold for 100 dollars and now appears to be around 520 dollars.
Around here, early releasedNFTtend to fetch a premium, so it might rise a bit more in value in the future.
NoteNFTtrading is on the chainPolygon(cryptocurrency name ismatic).
Personally, this is what stands out.
Ethereum’s Securities Issue
https://twitter.com/nook_ethereum/status/1634175777347616768
Regarding Ethereum, the SEC had previously stated that it is not a security, but now a New York State interpretation suggests it is a security.
Claiming it is not a security stems from the lack of a clear centralized management body, but the new view that it is a security implies tighter regulation.
Although New York State’s applicability nationwide is unlikely at present,各州の見解が出てきて、最終的にSECがどのように対応するかがポイントになるかもしれません。
Cryptocurrency USDC crisis
Following SVB’s collapse, the stablecoin USDC, which had diverged significantly from the dollar peg,USDC rose back toward roughly13 dollars in the early hours of the 13th. It briefly dropped to around0.88 dollars, but by Monday, the re-denomination of USDC into dollars was expected to resume normally, bringing relief.
https://jp.cointelegraph.com/news/usdc-bounces-back-towards-1-peg-after-fed-announcement
Last week, the cryptocurrency market faced a crisis.
News of SVB’s collapse spread worldwide, and it was revealed that USDC’s reserves of 3.3 billion dollars were held at SVB, causing a sharp market drop.USDC is a widely used dollar-pegged cryptocurrency with high convenience and reliability, but fears that 3.3 billion dollars of its 40 billion dollar reserves could be missing triggered investors to swap USDC for other currencies and cash, leading to a one-to-one to less than one dollar per USDC.
It is hard to imagine that one of the most trusted stablecoins, USDC, could be in such a state, but after a government announcement to protect SVB deposits, USDC regained its dollar peg.
Other information (no official release) indicates that reserves may be invested in US Treasuries, and that earning an annual interest could repay the 3.3 billion dollars.
From the above, the once highly trusted stablecoin USDC faced tension due to the ripple effects of big banks, but Bitcoin and the broader crypto market have since rebounded significantly.
USDCis often held temporarily during profit-taking in crypto investing, and many convert from USDC to crypto or Japanese yen. It is also used to earn interest on decentralized exchanges.
Two years ago, during a major bull run, many investors would convert profits toUSDC, and by holding USDC they benefited from the yen’s depreciation and the dollar’s appreciation, increasing their assets. Many domestic crypto investors may have experienced this.
