Macroeconomics and financial markets
The US stock market was closed on the 15th. In the Tokyo stock market today, the Nikkei Stock Average was down 109.7 yen (0.31%) from the previous day.
The price has continued to trend upwards, soaring to the 36,000 yen level, the highest level in 34 years, and the price has fallen for the first time in seven business days amid concerns that the market is currently overheated.
connection:10 major virtual currency stocks in the Japanese and US stock markets
Virtual currency market conditions
In the crypto asset (virtual currency) market, the Bitcoin price rose 0.43% from the previous day to 1 BTC = $42,803.
In addition to the selling pressure surrounding Grayscale’s conversion to GBTC, with less than 100 days remaining until the halving, it has been pointed out that selling by miners in preparation for reduced mining fees after the halving has come to an end.
— Bitcoin News (@BitcoinNewsCom) January 12, 2024
By the 13th, $1 billion worth of Bitcoin (BTC) had been transferred to exchanges, pushing a measure of miner outflows to a six-year high.
connection:Cryptocurrency market has fallen sharply after approval of Bitcoin ETF, selling pressure due to Grayscale’s GBTC etc.
According to the latest report from CoinShares, the increasing difficulty of mining due to the recent rapid increase in the number of active miners and the significant decrease in mining rewards after the halving threaten the profitability of many miners, causing weaker miners to withdraw. There is a high possibility that you will be forced to do so.
According to data from past halvings, the average hash rate in the six months following the halving dropped by 9% as inefficient miners became unprofitable and were removed from the network. The hash rate, which indicates mining speed, will increase by 104% in 2023, demonstrating the intensifying competition between major mining companies that are making upfront investments in equipment.
CoinShares estimates the average production cost after the halving to be $37,856 per BTC, and the breakeven point for miners after the next halving is expected to be around $40,000 per BTC.
connection:The break-even point for miners after the next Bitcoin halving is 1 BTC = $40,000 | CoinShares Report
Flows into exchange traded products (ETPs) increased by $1.18 billion last week, according to asset management firm CoinShares’ weekly report.
Although this size was less than the $1.5 billion weekly inflows following the approval of futures ETFs in October 2021, when 1 BTC = $69,000 and at the height of the bull market, last week’s trading volume was the highest ever. It recorded $17.5 billion. This is approximately nine times the average weekly trading volume of $2 billion in 2022.
The approval of Bitcoin ETFs (Exchange Traded Funds) has led to an unprecedented surge in capital inflows into virtual currency investment products from major asset management companies such as Bitwise, Grayscale, and 21Shares.
The trading volume of the Bitcoin ETF (exchange traded fund), which was launched in partnership between Ark Investment and 21Shares, reached 6 million shares ($275 million) on the first day.
The 11 approved Bitcoin ETFs have attracted a total of $625.8 million in net flows, indicating strong interest from institutional investors, according to data compiled by BitMEX Research.
Regarding this point, the CEO of 21Shares said in an interview with Blockworks on the 15th, “As the entry of U.S. financial institutions into the Bitcoin market is justified and Bitcoin ETFs become mainstream, the There will be two waves,” he said, stressing the need to look at the market from a medium- to long-term perspective rather than from a short-term perspective.
connection:Learn about Bitcoin ETFs from the beginning: Explaining the advantages and disadvantages of investing and how to buy US stocks
As of yesterday, the price of Solana (SOL) had fallen more than 8%, with over $7 million in long positions being liquidated.
The Block reports that Aave’s governance forum is considering a proposal to deploy Aave v3 on Neon EVM, a smart contract platform that enables Ethereum dApps (decentralized applications) on the Solana network.
If approved, Aave will be able to use Solana’s liquidity for lending services.
Bitcoin ETF special feature
We have introduced the “Heat Map” function to the CoinPost app for investors!
In addition to important news about virtual currencies, you can also see at a glance exchange information such as the dollar yen and price movements of crypto asset-related stocks in the stock market such as Coinbase.
■Click here to download the iOS and Android versions
— CoinPost (virtual currency media) (@coin_post) December 21, 2023
Click here for a list of past market reports