Before the state of emergency was officially declared to curb the spread of the pandemic in Japan, The overall activity of cryptocurrency exchanges declined as fiat deposits recovered.
According to information released by the Japan Cryptoactive and Virtual Exchanges Association (JVCEA) in March 2020, The number of active cryptocurrency accounts registered in the country decreased from 2,048,501 in February to 2,044,806 in March. This means that 3,695 fewer accounts may not have traded digital assets.
Deposits increase, activity decreases
Yuya Hasegawa, market analyst at bitbanc, reported on this Although activity among cryptocurrency traders declined in March, the number of fiat deposits on exchanges in Japan increased..
Partially, This may be because households expect the Japanese government to propose an economic payment of JPY 100,000 (approximately USD 940). According to the analyst, many of these deposits did not stay on the stock exchanges for long. Prime Minister Shinzo Abe declared a national emergency in Japan on April 8.
“When the corona shock hit the entire financial market A large proportion of investors may have withdrawn all of their money from cryptocurrency exchanges to raise cash“Hasegawa said in a report on August 3rd.”Some investors may have done this to prepare for potential riskssuch as income reduction and unemployment that could be caused by the state of emergency. “
It is still traded in Japan
Hasegawa says that, however A slight decrease in the number of active accounts “does not necessarily mean that Japanese users lose interest in cryptocurrencies”..
If anything, activity could have increased as Bitcoin (BTC) looked particularly optimistic as it rose to $ 12,000. Cointelegraph reported that generally low activity cryptocurrency accounts in Japan had a 2-3 times higher trading volume this week.