Crypto Market Trends in East Asia: A Comprehensive Analysis of Bitcoin and Ether

The cryptocurrency markets in East Asia have been abuzz with the arrival of various cryptocurrencies such as Bitcoin, Ether, and Memecoins. Price fluctuations amidst miners impacts and halving concerns have made for an exciting yet uncertain market.

According to data from Cobo’s Asset Under Custody, market confidence hit its lowest point in February 2022. However, since March, due to the influx of capital into the crypto market, the AUC has recovered to levels previously seen in November 2022. Charmyn Ho, head of crypto insights at Bybit, noted that “the recent surge in memecoins that occurred alongside a decline in general interest in crypto (as measured by Twitter and YouTube analytics), suggests these capital inflows are likely the result of investors rotating profits made from crypto’s strong performance year-to-date.”

Crypto Market Volatility: BRC-20 Boom Boosts Miners, BTC-ETH Correlation Lowest Since 2021

Although congestion on the Bitcoin blockchain has eased, the number of unconfirmed transactions is still at a record high. This surge in demand for block space due to BRC-20 tokens has led to considerably high fees, resulting in an additional $100M of revenue for miners. Yet, despite the increase in transaction activity, the number of active addresses decreased owing to the trend of BRC-20 users reusing Bitcoin addresses.

As for the 2 largest cryptocurrencies, namely Bitcoin and Ether, the 30-day rolling correlation between their prices has dropped to 77%, the lowest since 2021. This weakening correlation could provide incentives for investors to enter the volatile crypto market and benefit from the potential opportunities provided by trading Bitcoin-Ether pairs on major exchanges, without involving the US Dollar.

Bitcoin Halving: Impact on Miners and Chinese Trade Data

With regard to bitcoin’s halving coming up in early 2024, Cobo CEO, Mao Shixing stated that “from an economic point of view, bitcoin halving currently does not play a significant role, but it is a good narrative logic.” The potential impact of this event on miners is significant, and, according to Shixing, if the coin doesn’t stabilize above $30,000, many mining machines will have to cease operations.

Aside from Bitcoin and Ether, incoming data from China is anticipated to be positive. It is set to release its balance of trade figures for January and February, which analysts expect to have increased from $78 billion to $100 billion. On top of this, there is speculation that exports and imports might have increased year-on-year.

Profitable Bitcoin Wallets: East Asian Resilience in Crypto-verse

All these indicators support the notion that from an on-chain perspective, Bitcoin is trading higher than its cost basis for 70% of unique addresses. Hence, most investors in Wallets appear to be profitable.

The events of the past few weeks have convinced many that the crypto-verse is pretty resilient, and with upcoming market-moving events, traders and investors should look out for signals that Bitcoin is ready to break out. Despite the challenges in the banking sector in the US due to crypto-related assets, the optimistic sentiment in East Asia appears to be unwavering.

Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.