Virtual currency market analysis [August 12]

Bitcoin has again reached the milestone of $120,000, fueling favorable trading across the entire cryptocurrency market.

Last week’s summer doldrums had led to light trading and a sense that prices would fall, but now the whole cryptocurrency market is rising.

The total market capitalization of the cryptocurrency market as a whole has reached an all-time high, exceeding $4 trillion for the first time. I feel the main drivers of this move are Bitcoin and Ethereum ETFs.

Other coins are also rising, but not many have hit new all-time highs.

Compared to traditional bubbles, it still feels a bit lacking, though.

Nevertheless, Bitcoin and Ethereum have historically led the rise during previous bubbles.

The backdrop to this rise includes,

· Cryptocurrencies being approved in the U.S. 401(k) retirement plan.

· The latest U.S. employment data showing CPI below expectations.

· Corporate Ethereum purchases (especially).

This is mainly being cited.

The 401(k) is practical, but in some quarters it is said that real changes will take several years.

Also, the U.S. CPI for consumer prices rose 2.7% year over year, below the expected 2.8% (the previous month was at the same level). The slight deceleration in growth was interpreted as a positive result.

Ethereum is hitting new all-time highs in Japanese yen. As of writing, around 650,000 yen. In U.S. dollars, about $4,400, and if it rises another 10% in dollar terms, it would also set a new high in dollars.

In the short-term daily chart, since August there has been substantial upside, with the last two days showing consolidation but not a significant drop, followed by continued strong rise.

And this chart shows the high price since 2021.

There have been about three spikes since 2024, but all at the same level, and this surge appears to have broken through that level. Also, the 2021 surge was during a bubble period when not only Ethereum but other coins rose significantly more than in today’s market.

Taking that into account, my personal impression is that Ethereum still has room to rise.

Among the factors driving the surge, particularly mentioned is U.S. corporate Ethereum ETF purchases. Bitmain and Sharp Link Gaming.

Bitmain has purchased ETH worth $5 billion, reaching the milestone of holding 1 million ETH.

News of companies buying ETH as a financial strategy continues, and during price declines Ethereum tends not to fall much; the recent rise (driven by the U.S. CPI release) has led to a new all-time high.

◯ Ethereum reaches its 10th anniversary

The world’s largest versatile blockchain (distributed ledger) Ethereum celebrated its 10th anniversary on July 30. A volunteer community of engineers has pursued a distributed digital society, improving energy efficiency and speed, and enhancing practicality. As a result, Ethereum is becoming more usable as a foundation for various cryptocurrencies, financial services, and businesses. With the establishment of the “stablecoin” regulations in the United States, Ethereum’s role as a value-linked digital asset has been reinforced, according to Nikkei.

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(This article has been distributed since 2016)

It is rare for Nikkei to discuss Ethereum, and among those topics, it is said to have increased practicality.

I first started buying Ethereum in 2016, and nine years have passed since then. Those who understood Ethereum and bought it in the early ICOs are truly remarkable in hindsight.