Cryptocurrency market conditions
Cryptocurrency (virtual currency) market on the 20th. Bitcoin prices have remained at 4.79 million yen ($ 41,974), up 0.81% from the previous day.
It is still on a rugged line and is a caution zone, but if we can break out of the consolidate, will the momentum of rebound increase?
Arcane Research publishes reports on financial market transactions, including Bitcoin and the US Equity Index (S & P 500). We analyzed Bitcoin trading trends.
Arcane Research points out that BTC prices have a high rate of increase during US time (22:00 to 10:00 the next day, daylight saving time 21:00 to 9:00 the next day). He noted that 43% of Bitcoin’s total trading volume was recorded concentrated in the hours when the US stock market was open, and that the ratio of American traders is also increasing in the cryptocurrency market.
Anomalies that tend to rise in US time and fall in Asian time have long been pointed out in research by The Block.
At that time, FTX CEO Sam pointed out that “because Bitcoin miners are staying in Asian regions such as the suburbs of China, the sale by miners (miners) is one of the reasons.” He said that there is also an aspect of “cultural values difference” regarding the time axis of possession with Americans.
“Western traders tend to be bullish and have reactionary sales in Asian time,” said Darius Sit, co-founder of QCP.
connection:Why is Bitcoin sold in “Asia Time”? Opinions of people involved in the virtual currency industry = The Block
In particular, the correlation coefficient with the US stock market has been on the rise in recent months, but the rise in the US ratio seems to be one of the reasons why stock prices can affect Bitcoin’s performance.
According to a report by the International Monetary Fund (IMF), before the corona shock (March 2020) due to the pandemic of the new coronavirus, there was almost no correlation between crypto assets such as Bitcoin and Ethereum and stock indexes. However, as investors’ risk selection became stronger during the monetary easing phase, it became more strongly correlated.
The measured value from 2020 to 21 has risen to “0.36”.
“Bitcoin’s correlation with stocks has turned higher than that between stocks and assets such as gold, investment grade bonds, and major currencies, pointing to limited risk diversification benefits in contrast to what was initially perceived.” #IMFblog https://t.co/0EhROZfX88 https://t.co/Bgn2QZVJxD
— Gita Gopinath (@GitaGopinath) January 11, 2022
connection:Bitcoin depreciation due to decline in US stock index, correlation coefficient reaches record high
In addition, while the inflation rate in the United States remains high for the first time in about 40 years, the inflation rate in the United Kingdom (consumer price index: CPI) also increased by 5.4% from the same month of the previous year, for 30 years starting in January 1997. It reached a record high in the statistical data of.
In the phase of economic recovery from the corona disaster, the demand for fuel and food related to transportation is rapidly increasing, and the transportation cost and the price of food etc. are high due to the influence of the supply chain disruption due to the spread of infection of the new coronavirus Omicron species. Has widespread impact.
In the inflation phase, including the mass reprint of legal tender, there is a concern that the value of cash and deposits will decline relatively, which can be a tailwind for the Bitcoin market, which has high deflationary assets with high scarcity value in the medium to long term.
On the other hand, as monetary tightening accelerates to curb inflation, there is more concern about the forward correlation risk of US stock prices in the short term, so we would like to keep in mind.
Altcoin market trends
Among domestic listed stocks, Liquid by Quoine’s QASH has rebounded by + 30.1% from the previous week and + 13.7% from the previous day.
On the 19th, FTX, the largest derivative exchange, “in cooperation with Japanese partners” suggested expanding trading services for Japanese residents in compliance with Japanese laws and regulations, accelerating speculative buying. There is a possibility.
connection:FTX expands trading services for Japanese residents?
In August 2009, Liquid Global received a loan of 13 billion yen ($ 120 million) from the major derivative cryptocurrency exchange FTX when it was hacked.
CEO Sam Bankman-Fried mentioned plans to use Liquid Global’s capital generation, liquidity provision, balance sheet improvement, as well as efforts in the licensing process in Japan and Singapore.
QASH succeeded in raising 12.4 billion yen in ICO (Initial Coin Offering) in November 2017, but the main net launch is significantly delayed from the original schedule.
Meanwhile, Liquid by Quoine reported the end of audits for liquid chains and smart contracts in June 2009. In October 2009, the Japanese corporation QUOINE Co., Ltd. completed the registration of “Class 1 Financial Instruments Business”, which is a strict license required to conduct securities companies and foreign exchange margin trading business (FX). Progress was also seen, such as reporting.
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