Analysis of Causes of Bitcoin's Significant Decline TSUDOI, a virtual currency information community service, reports Further changes from the drastic change in the market in early August need to be watched closely.

SIGMA Corporation (TSUDOI), a virtual currency information community service operated by SIGMA Corporation, has analyzed industry trends in July 2024 and the causes of bitcoin's significant drop in early August.

From the first weekend into August 2024 through August 5, bitcoin fell sharply, dropping from $65,400 on Friday the 2nd to $49,500 at one point, a drop of about 24%. Starting with the release of the U.S. jobs report, the deteriorating situation in the Middle East, Chairman Powell's denial of an interest rate cut, and falling stock prices in the Japanese market all contributed to the decline. In particular, the assassination of a Hamas leader by Israel heightened tensions and the weak jobs report triggered fears of an economic slowdown. The market has been calling for a rate cut since Chairman Powell has expressed a negative view on a rate cut.

A drop in stock prices in the Japanese market also affected bitcoin. Although the intent of the transfer is unclear, Jump Crypto's transfer of 17,576 ETH (equivalent to approximately $46.78 million) to CEX in the past 24 hours has scared investors.

The drastic change in the market environment continues to require close monitoring for further changes. TSUDOI, a virtual currency information community service, also offers a weekly reporting service and promotes the use of information services to minimize risk as much as possible.

Looking at the virtual currency market from the end of June to the end of July 2024, there was a turnaround from the previous month of June and an upward trend. With a total market capitalization of approximately 386 trillion yen ($2.51 trillion), compared to a market capitalization of approximately 346 trillion yen ($2.25 trillion) at the end of June, the virtual currency market in July saw an overall increase of 11.56%.

The bitcoin (BTC), the key currency that leads the entire virtual currency market and whose price trend is always watched closely, moved from approximately $62,723 to $66,852, an increase of approximately 6.58% in July. The overall rise in the virtual currency market exceeded the rise in bitcoin by about 5 percentage points, which can be said to be the result of money being invested in stocks other than bitcoin.

In the virtual currency market, when bitcoin prices fall, altcoins often exceed bitcoin's decline, while when the market rises, altcoins sometimes exceed bitcoin's rise. The market trend in July, following the decline in June, also confirmed the general consensus regarding the market trend of virtual currencies.

TSUDOI, a virtual currency information community service, picked out two topics that influenced bitcoin prices in July 2024.

The first was the calming down of the massive Bitcoin sale by the German government. The German Federal Criminal Police Agency (BKA) moved a portion of the bitcoins seized in early 2024, worth approximately 67 billion yen, to the market, which was a factor in the June 2024 drop in the bitcoin price, but it appears to have subsided.

In addition, former U.S. President Donald Trump's keynote speech at the "Bitcoin Conference 2024" (held in Nashville, Tennessee) on July 28 also attracted attention as a topic that will influence the future price trend.

■Market Dominance TrendThe respective market dominance rates from "Bitcoin" to "Other Stocks" remained stable.

TSUDOI, a virtual currency information community service, categorizes virtual currencies into four categories: "Bitcoin (BTC)," "Ethereum (ETH)," "Top 50 excluding these two stocks," and "Other virtual currencies after Top 50," and also summarizes the market dominance trends (dominance trends) for each category. The report also summarizes the market dominance trends (dominance trends) for each of these categories and provides a detailed report.

In July, bitcoin's market dominance remained relatively stable, starting at 54.61% on June 30 and reaching a monthly high of 57.9% on July 15, after the impact of the massive bitcoin sale by the German government had subsided. It then reached 52.46% on July 29.

A breakdown of the market dominance on July 29 shows that Ethereum (ETH) accounted for 15.89% of the market. The Top 50 excluding these two stocks" accounted for 24.32%. Other virtual currencies after the TOP50" accounted for 7.34%, indicating that stocks other than Bitcoin also recorded stable market dominance.

■ Major VC investments. DeFi (decentralized finance) to grow rapidly in the investment field as the number of funded projects increases.

TSUDOI, a virtual currency information community service, has compiled a list of major venture capital investment results to examine the latest industry conditions and innovative technological advances.

The total amount of funding for the period from July 1 to July 30, 2024 was approximately 190 billion yen. Compared to the previous month's total funding, the total amount of funding was about 10% less.

On the other hand, the number of major fundraising projects was 108, an increase of 3 compared to 105 in the previous month. Of these, 37 projects were funded by VC firms with large investment funds (Top 20 firms), also up from 34 the previous month. Although the total amount of funding was on a slight downward trend, the number of projects is on the rise.

In addition, an analysis by investment area shows a significant change this month, with the infrastructure sector, which had held the top spot, giving up its position, and the DeFi (decentralized finance) sector growing rapidly.

In July, 31.3% of total funding was invested in DeFi, up 11.3% from 20% in June. In addition to the infrastructure field, the DeFi field is also growing rapidly and attracting funds, and there are high expectations for the improvement of development capabilities in the infrastructure field, which serves as the foundation for blockchain development, and DeFi technology, which serves as a window for DApps (decentralized applications).

Independent analysis of "TSUDOI" top issues and new issues: Prices rose for five of the seven issues in the spotlight.

On the other hand, TSUDOI, a virtual currency information community service, picks up the top stocks (top 50 stocks by market capitalization on a weekly basis. In July 2024, we announced seven stocks to watch through the fourth week of the month, and five of these stocks saw their prices rise. In addition, three of these stocks had higher performance than the rise in bitcoin.

In a turnaround from June, the market capitalization of virtual currencies and the price of bitcoin began to rise again in July. The month also saw an increase in the number of fundraising projects and major changes in the investment sector, which are all noteworthy topics for predicting future market trends.

■Experts' Comments

SIGMA Representative: Koji Muto

The market capitalization of the virtual currency market began to rise in July, but has been on a downtrend again in the second half of the month and into August. The virtual currency market is now closely related to all political and economic developments on a global level, including the German government's actions and the U.S. presidential election, not to mention Japan's domestic economic policies. In order to make the right investment decisions, there is a high demand for TSUDOI, one of the few virtual currency information services in Japan, and we recognize the need for further efforts to improve the accuracy of our analysis.

TSUDOI Research Director: NAKAMORI

One important topic in July was MiniApps, which utilizes the TON Network running on Telegram. Telegram, which has about 900 million users, aims to expand its user base by offering the benefits of Web3 on this platform. the appeal of MiniApps lies in its design that can be easily used by Web2 users, fast transactions, diverse applications, and user-friendly interface. This has attracted a great deal of attention in the investment field, with major projects receiving funding from well-known venture capitalists.

In this release, in order to provide Japanese consumers with an easy-to-understand market environment, we have used the dollar-yen exchange rate at the beginning of the month as a general rule and have used "yen" as the base currency.

In principle, this release is based on the dollar-yen exchange rate at the beginning of the month. (There are some exceptions.) For this reason, month-to-month comparisons are not shown in this release.

Therefore, when comparing the previous month's figures with those of the previous month, some differences from the actual figures may occur when using "yen.

If you need more accurate figures due to rate fluctuations, please contact us directly.

TSUDOI]

A virtual currency information community service operated by SIGMA Corporation. The service provides real-time information in Japanese in an easy-to-understand format, selected by professionals in the virtual currency industry. The service features news distribution, commentary on each issue, and project evaluations from a professional perspective. The site also publishes a number of study contents for beginners.

The virtual currency industry is said to be rife with scams and misinformation, making it difficult to keep up with valuable information in real time. Furthermore, most new information is based on English-language articles. The service was launched in October 2022 to promote the expansion of services to meet the needs of virtual currency investors in Japan.

Service Logo

＜Main Features

The service provides a report on about 10,000 stocks, picking up top stocks of interest from three major perspectives: (1) analysis of top stocks, (2) analysis of mid-cap stocks, and (3) analysis of new stocks to be discovered.

The company is particularly strong in reports aimed at altcoin investment. It is the one and only virtual currency information community service that independently picks up and introduces hot stocks and big holes.

The service provides "24-hour support chat," "research requests," "manual requests," "Zoom interviews," and other services that allow users to ask questions directly to experts in the virtual currency industry, in addition to distributing information.

URL: https://tsudoi-community.com

Operating company: SIGMA Corporation

Location ： Shibuya-ku, Tokyo

Representative Director: Koji Muto

URL ： https://www.sigmainc.co.jp

Features of TSUDOI's report format (1) Top issue analysis (2) Mid-cap issue analysis (3) New issue discovery analysis

(1) Top Issues Analysis

TSUDOI defines the top 50 stocks in terms of market capitalization as "Top Stocks." From approximately 10,000 stocks, TSUDOI determines the top stocks based on the rate as of Thursday of each week and analyzes them in weekly reports. 5 to 10 stocks tend to change weekly. From among these top stocks, a more in-depth look at the stocks whose token prices have soared the most during the period provides a clue to the latest developments in the virtual currency market.

(2) Analysis of mid-cap stocks

Focusing on stocks in the top 51 to 400 in terms of market capitalization, the report picks out stocks to watch closely. The analysis is based on search trends, which can lead to the provision of information useful for identifying stocks that have the potential to lead the market in the future.

(3) New Issue Discovery Analysis

In order to proactively pick up stocks that have the potential to lead the market in the future, we use two analysis methods in our reports.

The first is "new stocks newly ranked in the 51st to 200th positions in the market capitalization ranking.

The second is "new stocks in the portfolios of major VC firms that have risen in market capitalization during the period.

By reporting these stocks as stocks to watch from a relatively early stage and keeping a close eye on trends, we will be able to conduct ongoing research. This will reduce the risk of investing in new stocks as much as possible and provide information to secure stocks that will grow in the future.

Representative of SIGMA: Koji Muto

One of the early adopters in Japan who entered the virtual currency industry in 2012.

In 2013, he was an early investor in a number of crypto assets, including Ethereum, currently the second largest crypto asset by market capitalization, and Cardano, currently the eighth largest. Since the early days, he has been educating the public about virtual currencies not only in Japan but also in China, Singapore, and other Asian countries, creating many virtual currency chieftains.

With the revision of the Funds Settlement Law in April 2017, he founded Xtheta Inc. and became the third fastest company in the Kinki region to receive FSA registration in December 2017 of the same year. (In November 2022, he transferred the business to Binance, where he served as executive officer and head of new business development.

He then launched SIGMA and released the "TSUDOI" service, aiming to become Japan's largest crypto asset and membership information distribution platform.

Representative of SIGMA: Koji Muto

Head of "TSUDOI" research: NAKAMORI

With extensive experience in the blockchain industry, Nakamori leads TSUDOI's research department, and has been working in the virtual currency industry since 2014, initially involved in fundraising-related work for token-issuing projects. Later, in 2017, he started supporting virtual currency related startup companies. He has been involved in advisory and consulting work and has helped more than 10 companies with successful fundraising projects.

From 2020 onward, he helped launch staking provider businesses in anticipation of the transition to staking major virtual currencies such as Ethereum and Cardano. During the same period, he supported the development of decentralized wallets and promoted marketing strategies for the Japanese market, contributing to the company's performance as one of the top 10 staking providers in the world.

Recognizing the need to disseminate useful information to investors, he joined TSUDOI as the leader of the research department. He is committed to using his extensive expertise and experience to gather information with the goal of delivering reliable information to investors and supporting them in making wise investment decisions.

Head of TSUDOI Research: NAKAMORI