The Japanese Yen has been plunging since last Friday and everyone is wondering what this means for the global economy and, of course, cryptocurrencies.
For years, Japan has been a major player in keeping financial markets afloat through various money-sucking policies. But now, the yen has plunged against the dollar, and many fear it means trouble ahead.
The yen has plunged to a 34-year low after the Bank of Japan decided to maintain its current interest rate policy despite its continued depreciation. Japan, with a debt-to-GDP ratio of around 250%, is in even worse shape.
Why does this matter? Japan, the world’s third-largest economy, has no immediate remedy to stop the yen’s downward spiral. It could drag down global markets, including cryptocurrencies and Bitcoin, which have been falling lately. It has been falling for four weeks in a row and looks set to fall again this week. The last time this happened, things didn’t look good at all.
We continue to watch the Bank of Japan to see how they react. If they step in to support the yen, it may give us some hints about where global markets are headed next.
Meanwhile, the Hong Kong ETF is set to launch today, with far more users in Asia than in the US.
Bitcoin is expected to finish the month above $61,300, which is the highest monthly close of 2021. Currently, Bitcoin is at this support level!
Bitcoin must hold these levels or $52,000 is next!
The next support level between $60,000 and $61,500 must hold in the coming days or else Bitcoin will lose its major support level for two months and could drop to test $56,000 to $58,000 or even $52,000 to $53,800.
Coinbase will report its second quarter earnings this week. Coinbase mentioned in its fourth quarter shareholder letter that the TVL of the L2 layer Base was $600 million; however, the TVL is now $1.8 billion, a 3x increase in just three months. Coinbase's net profit for 2023 is $95 million, and Base's total revenue from the beginning of the year has reached $52 million, accounting for a large part of Coinbase's total revenue. In addition, with spot trading volume doubling in the first quarter and custody revenue from spot ETFs, we believe Coinbase will report strong first quarter results next week, exceeding market expectations.
Funds are flowing to Base, and the USDC balance on Base has risen to the second largest, second only to Ethereum.
Builders are building on Base, and Base contract deployment ranks first among all chains covered by Token Terminal.
Strong user growth and revenue.
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Note: All content represents the author's personal views only, is not investment advice, and should not be construed in any way as tax, accounting, legal, business, financial or regulatory advice. Before making any investment decision, you should seek independent legal and financial advice, including advice on tax consequences.
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