The investors In Japan, its cryptocurrency holdings increased in the early stages of the pandemic before the government made financial aid payments.
The Bank of Japan has revealed this, according to a report by the Japanese news agency Nikkei on July 13 The supply of M3 in the country, a measure of various cash reserves in circulation, rose 5.9% in June to $ 13.5 billion.
The amount of liquid funds available to the residents of Japan has increased After the government spent 100,000 yen, about $ 936, on economic stimulus payments to individuals, 300,000 yen to some households, and other payments to businesses in response to the coronavirus outbreak.
Nikkei reported this These payments have made the cash flow in Japan “plentiful” and less spending habits.. If this money targets any number of asset markets, it could bubble if quantitative easing continues while inflation is limited.
Are stimulus payments going towards cryptocurrencies?
Cointelegraph reported in April that The number of purchases for USD 1,200 on the cryptocurrency exchange Coinbase quadrupled in March. The data suggests that Americans may have used government-issued economic relief checks to invest in cryptocurrencies during major nationwide closings.
In March, investors in Japan increased their holdings of major cryptocurrencies., a decline of 11% for Bitcoin (BTC), 5.7% for Ethereum (ETH) and 6.4% for Ripple (XRP) as well as moderate growth for other altcoins.
USD 936 stimulus checks began issuing in Japan in April. This means that Japanese residents invested more in cryptocurrencies after Black Thursday and during the country’s first steps to prevent the spread of the corona virus;; Many schools in Japan closed in March.