Bitcoin hit a new high of 106,000 dollars just a week ago, underwent a large correction and drop to around 92,000 dollars, and has recently risen to 98,000 dollars.

In Japanese yen, it has reached 15.4 million yen.

The yen has been weakening considerably. That can be said to be pushing up the price of Bitcoin in yen terms.

As the year-end market approaches, it tends to be quiet, and because it is a calm market, any event can cause rapid movements.

Recently, when Bitcoin falls, the entire market also falls, but among such times, looking at the coins that quickly rebound, they are regarded as currencies that attract attention.

For next year’s market, U.S. major cryptocurrency exchanges have released reports,

· Trading of dollar-pegged stablecoins is increasing

· A framework will be established under the new administration

· Real-world assetsRWA (assets like government bonds managed within cryptocurrency frameworks) are attracting attention

· Evolution ofcryptocurrencyETFs

All of the above were stated.

If there is one biggest topic now,ETF. ETF brings in large funds, and that is pushing up the cryptocurrency market.

Currently, Solana (SOL), Ripple (XRP)’sETF is under application and is said to be approved under the next administration.

Also, due to its characteristics, Ethereum can be used to earn interest by operating it, and there is a plan to do that through an EthereumETF. In other words, by holding an EthereumETF, you would receive interest (likely a few percent). Combining the price appreciation of the holdings with interest payments would be a very attractive service, wouldn’t it?

Unfortunately, in Japan there is no cryptocurrencyETF service, so it cannot be used...

Also recently there was news that inheritance of cryptocurrencies could incur as much as 110% tax (meaning tax can exceed the asset value) etc.

※Although rare, it is good to be aware of these details.

We hope to look for further opportunities together with next year’s market outlook.

◯ Bitcoin as an Asset?

Bitcoin, the representative cryptocurrency (digital asset), has surpassed 100,000 dollars. The rise in price is attributed to shifting away from merely a new currency toward a stronger asset aspect. It no longer threatens the fiat currency status, and the development of investor protection mechanisms has expanded the group of people willing to accept it — Nikkei Newspaper

ーーーーーーーーーーーー

This is from Nikkei, stating that it no longer threatens the fiat currency status. However, Bitcoin has shown performance higher than any other financial asset, yet it is not widely reported in Japan. On the other hand, the Japanese yen is suffering due to yen weakness and inflation.

One major factor in Bitcoin rising in value is that currencies of such countries are losing value due to inflation.

So, is it true that it no longer poses a threat?

※In paid subscription sections, we conduct deeper stock analysis. We want to invest more deeply beyond Bitcoin and Ethereum as well. If you want to know the future direction of the cryptocurrency market and seize that wave, please consider subscribing. Research is very important and ongoing.

(This article has been distributed since 2016)

Cryptocurrency market analysis [December 24]