The Japan Virtual Asset and Cryptocurrency Exchange Association (JVCEA), a self-regulatory organization for the cryptocurrency industry in Japan, recently released a report on Japanese holdings of major cryptocurrencies in March.
169,376 BTC remain on Japanese exchanges, an increase of more than 11% compared to the previous month. The XRP rose 6.4% to 3.2 trillion XRP. The ether rose by more than 5.7% to 1.14 million ETH.
In addition, the number of Bitcoin Cash (BCH), Monacoin (MONA), Litecoin (LTC) and NEM (XEM) also increased slightly in March.
Bitcoin’s spot trading volume in March was 617.3 billion yen (around $ 5.8 billion), eleven times the trading volume of XRP, the second most-traded cryptocurrency in the same month.
Black Thursday and the Japanese market
Bitcoin declined more than 25% in March. The month started at around $ 8,600, but on March 12, known as “Black Thursday,” it briefly fell below $ 5,000. Bitcoin ended the month near $ 6,400.
The reason why Japanese investors have increased their cryptocurrency holdings is currently unclear.
You could say that Japanese Bitcoin believers didn’t hesitate to buy more after the collapse of the cryptocurrency market. It may also be that Japanese investors sent more cryptocurrencies to exchanges to sell them, unlike Coinbase, where Bitcoin was recently withdrawn.
Speaking to Cointelegraph, Yuya Hasegawa, market analyst at FSB-licensed cryptocurrency exchange Bitbank, explained that price movements and cryptocurrency stocks of users are generally “inversely correlated”.
He further analyzed as follows:
“At the time of the price’s downward movement, users can send cryptocurrencies to exchanges to take profits or reduce losses. Another reason could be a premium from Japan in the BTC market compared to its market based on US dollars after March 12th . “
Investors around the world have accumulated cryptocurrencies during the corona virus pandemic. According to the British cryptocurrency trading app Fashion, investors Baby Boomers (born between 1946 and 1964) and Generation-X (born between 1965 and 1980) have increased their monthly investments in Bitcoin since the pandemic started.
Janis Legler, Fashion’s Chief Product Officer, noted that his results “could show an unprecedented change in the way investors think today about the global pandemic.”