Japan exchanges experience a surge in crypto holdings

03 August

As the pandemic continues to bring disaster to the global economy, the world is looking for ways to cope and make ends meet. Due to the high unemployment rate and the uncertainty in the current market, most people are resorting to different ways to safeguard their investments and businesses. In Japan, there’s a notable increase […]

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As the pandemic continues to bring disaster to the global economy, the world is looking for ways to cope and make ends meet. Due to the high unemployment rate and the uncertainty in the current market, most people are resorting to different ways to safeguard their investments and businesses. In Japan, there’s a notable increase in the demand for cryptocurrency since the pandemic started. 

According to the Japan Virtual and Crypto Assets Exchange Association (JVCEA), there’s a significant surge in the holdings of major cryptocurrencies such as Ripple, Bitcoin, and Ehtereum. Based on their report, the trading and exchange for Bitcoin were at $169,376, which increased by more than 11% compared to the previous month. 

Meanwhile, Ripple increased by 6.4% while Ethereum had a 5.7% surge that amounted to 1.14 billion worth of Ether.  Additionally, the demand for altcoins such as Bitcoin Cash, Monacoin, and Litecoin and NEM also spiked in March. 

Bitcoin experienced a downward trend by 25% around March, which was dubbed as the Black Thursday for BTC. During that time, Bitcoin started around $8,600 then took a nosedive at $5,000. However, it regained its traction in the charts by the end of the month when its value climbed up to $6,400.

While the reasons behind this sudden surge in cryptocurrencies remain unclear, a lot of crypto experts think that Japanese investors are keen on selling and trading cryptocurrencies

According to Yuya Hasegawa, a market analyst at Bitbank, crypto traders send their digital assets to earn more profits or loss cutting. 

In the time of downward price movement, you can say that users send cryptos to exchanges to take profits or loss cutting. Another reason might be a Japan premium in the BTC market compared with the US dollar-based market after March 12’. 

Meanwhile, a UK-based digital asset trading app called Mode said that there’s an increase in Bitcoin investment among baby boomers and Generation-X when the pandemic broke out. Jani Lagler, Mode’s chief product officer, said that the pandemic could start a global revolution in terms of finance and investing. 

READ MORE: Japan Crypto and Casino News

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