“Downward pressure on virtual currency prices is starting to weaken” Coinbase Weekly Report

Publication of virtual currency report

On the 2nd, the research team at U.S. crypto asset (virtual currency) exchange Coinbase released its weekly market report.

The report notes that downward pressure on the price of Bitcoin (BTC) and other cryptocurrencies is starting to ease. He also expressed the view that the trading environment may improve in the future.

One of the grounds for this view is that the bankrupt virtual currency exchange FTX is believed to have sold GBTC, a Bitcoin spot ETF (exchange traded fund). This information was reported by the virtual currency media CoinDesk last month, and of the more than $2.2 billion worth of GBTC sold by January 19th (326 billion yen at current rates), approximately $1 billion was sold through FTX. I pointed out that it was a minute.

connection:FTX Legacy $1 billion worth of GBTC sold since Bitcoin ETF approval

In addition, restructuring plans for bankrupt companies such as Celsius Network are progressing, and net inflows of an average of $200 million (approximately 29 billion yen) per day into US Bitcoin spot ETFs have been confirmed. It is listed.

He also argued that macroeconomic conditions will provide tailwinds in the coming weeks. The US central bank (FRB) has expressed the view that it will start lowering interest rates in May and begin the process of ending quantitative tightening (QT) in June, which will lead to the Bitcoin exchange rate scheduled for April. He stated that there is a possibility that there will be upward pressure on the prices of Bitcoin and other virtual currencies in the second quarter of this year (April to June), as this coincides with the halving of Bitcoin and other cryptocurrencies.

He also predicts that the effectiveness of ETF advertising will become more widespread and that asset managers will begin adding physical Bitcoin ETFs to their portfolios.

Other contents

In addition to the above, the report also mentions airdrops in the Solana (SOL) ecosystem. He pointed out that the airdrop of Jupiter, a DEX (distributed exchange) aggregator, was the largest to date.

connection:Jupiter’s own virtual currency “JUP” launched, listed on Binance etc. Price temporarily at $2

He also stated that many high-profile projects on Solana do not yet have tokens, and there are still three Jupiter airdrops left, indicating that he expects this airdrop trend to continue for at least several months. There is.

He also pointed out that the launch of such tokens has the potential to increase the attractiveness of the Solana ecosystem.

connection: Is it the beginning of the airdrop season in 2024? VC investment trends indicate signs of a rush to issue tokens

In addition, in the global trends column, we covered the Japanese government’s efforts toward DAOs (decentralized autonomous organizations). The article introduces that members of the Diet held a hackathon (debate) to discuss DAO and understand the needs of those involved.

connection: “Promote the spread of DAO in Japan” Recommendations by the Liberal Democratic Party’s Digital Society Promotion Headquarters, including resolving tax deficiencies, are released.

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