Cryptocurrency Market Analysis [January 28]

AI’s volatility sees Bitcoin rebound: The cryptocurrency market rebounded on Monday night, with Bitcoin recovering from Friday’s drop to 97,740 dollars and rising to 102,000 dollars. This 4.4% rise comes after the disruptive announcement from AI company DeepSeek, but Bitcoin is 1 month 20th’s all-time high of 109,000 dollars, down 6.5%

Chronos Research analyst Dominic John told Decrypt that there is a “noticeable recovery” as investors seem to be reallocating into their favorite crypto assets amid a trend driven by optimism about the long-term impact of AI democratization on the market.

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Yesterday, Bitcoin fell rapidly from around 10500 dollars to around 97000 dollars, and has since rebounded.

DeepSeek is comparing China’s AI to Tokyo University problems with ChatGPT (premium version), resolving them at roughly the same speed, and it is ranked first in app stores due to also being free.

However, regarding China’s international issues, it is highly involved in government censorship and other aspects, prompting questions about its reliability.

Other responses, excluding ChatGPT, suggest that other AIs (such as Google’s Gemini, etc.) are superior.

Indeed, there are puzzling aspects to those developed at low cost in a short period.

Bitcoin may be heavily influenced by tech company stocks, suggesting that factor could be large.

Since December last year, Bitcoin has traded in a range with price fluctuations within a certain band.

Aside from that, some currencies like SUI and SOL, XRP have set new all-time highs.

However, for other currencies, prices rise and fall, with the declines being larger and prices slowly drifting downward.

Ethereum and related assets have not performed very strongly.

Nevertheless, Ethereum’s ecosystem remains massive, and its price performance cannot fully measure its value.

◯ President of Cryptocurrency finally signs

Trump signs the “Executive Order on Cryptocurrencies”

・Make the United States a leader in the cryptocurrency market

・Establish a group to build and evaluate a cryptocurrency reserve

・Promote or prohibit the issuance of CBDCs

and thus not a “Bitcoin Reserve” but a “Cryptocurrency Reserve” including stablecoins

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The content is somewhat restrained compared to the election period, but it can be regarded as very positive.

Though the topic is “cryptocurrency reserve,” it does not specifically mention Bitcoin. However, regarding the digital committee, a member who proposed Bitcoin hoarding has been elected, indicating that the United States will not sell its Bitcoin holdings and will consider strategic stockpiling. And indeed, that appointment is being carried out.

Additionally, the discussion covers dollar-linked staking coins as well, and there is a plan to actively use blockchain for transactions. This stablecoin is also said to be a factor in favor of the US dollar.

In any case, it is a national-level move to consider policies for cryptocurrency and Bitcoin, and it is very forward-looking compared with the previous Biden administration.

◯ Bitcoin reactions in the public

I’ve started receiving inquiries about Bitcoin from acquaintances who don’t invest much.

A friend’s child is preparing for university entrance exams and will need money, so they’re wondering if they should buy and manage Bitcoin. Will the price go up?

That’s roughly the gist.

With a certain amount of funds, it’s difficult to make a profit in a short period; you need to manage it in the medium to long term. And importantly, the buyer must have a view that Bitcoin will increase in value in the future.

If I give a little advice and Bitcoin subsequently crashes below the principal, the person will probably sell it.

What matters is that the buyer understands Bitcoin and has a forward-looking perspective.

◯ Mercari launches NFT businessMercari, Inc. (hereafter, Mercari) will, from January 28, 2025, begin offering an NFT marketplace “Mercari NFT” where you can trade NFTs on Mercari. This will enable purchasing and listing popular NFTs handled on overseas major NFT marketplaces such as OpenSea, expanding Mercari’s business from a traditional goods marketplace to a digital marketplace.

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Mercari, a flea market app, was one of the first companies to introduce Bitcoin into its app.

This time, with the introduction of NFT (Non-Fungible Token), what is the actual aim? NFTs are digital assets managed on the blockchain and can be listed or purchased on Mercari.

NFTs are said to be in decline after a few years of popularity.

Although digital and not physical, it is popular in the art field and may carry roles such as membership rights; it will be interesting to see what intent lies behind releasing them at this timing.

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(This article has been distributed since 2016)