In April, the Japanese government began distributing JPY 100,000 (approximately $ 930) to each household. But did the Japanese follow the example of some people in the United States and spend that money on cryptocurrency exchanges? Data from the three largest cryptocurrency exchanges in Japan suggest that this was probably not the case.
In your last report Yuya Hasegawa, market analyst at Bitbank Exchange points to some “deposit irregularities” in June, but comes to a general conclusion Aid payments for the corona virus did not result in any significant changes in the behavior of Japanese crypto investors.
There have been some changes to normalcy. JPY 100,000 deposit from 40-year-old investors increased by more than 36%and hit 20 year old investors for the first time in two months. The number of JPY 100,000 deposits from 50-year-old investors increased by more than 35%.
But according to Hasegawa, These changes are “too tiny to change the general behavior of investors significantly”.. Comparing the number of deposits in June to “the previous months where approximately the same monthly BTC volume was recorded (ie September 19 – December 19”), he found:
“The number of deposits and the rate of increase are somewhat low to confidently conclude that a number of Japanese investors are using their stimulus checks to buy cryptocurrencies (focus on ‘a number of’).”
BitFlyer and Coincheck in the control of stimuli of the Covid-19
Cointelegraph asked the BitFlyer and Coincheck exchanges to check the number of JPY 100,000 deposits since April. General, The results confirmed that stimulus payment by Covid-19 had little impact on cryptocurrency purchases..
BitFlyer compared February to April, May and June. The number of JPY 100,000 deposits increased from 1.1 to 1.2 between April and June. The rate of increase was slow and BitFlyer said it could not be concluded whether the number was determined by the coronavirus rescue stimulus.
According to Coincheck The number of JPY 100,000 deposits gradually increased between January and April, but stopped gaining weight in May. It declined in the second quarter from the first.
Why the little impact?
Why did Japanese investors avoid using the ransom for cryptocurrency investments? Hasegawa suggested that could be related to the “trend characteristic of Japanese consumers to invest“:
“In Japan, average households only spend about 15% of their funds on financial products (excluding insurance, pensions and the standard guarantee plan) and just over 50% on savings, while average households in The United States and the European Union invest more in financial products and less in their savings. “
The Bank of Japan announced this on July 13, as Cointelegraph reported The supply of M3 in the country, essentially the volume of deposits by individuals, businesses and local governments excluding financial institutions, rose 5.9% in June to USD 13,500 billion..