According to a recent report released, the cryptocurrency holdings across Japanese exchanges has exploded during the previous few months, with the surge correlating to the outbreak of the COVID19 Coronavirus.
Reported by the Japan Virtual and Crypto Assets Exchange Association, the number of Bitcoin, Ripple, and Ethereum held in investment in Japanese exchanges has increased significantly since March 2020. The report tells how Bitcoin increased by a hefty 11% from the previous month, Ripple’s XRP increased by 6.4% and Ethereum saw a 5.7% increase in holdings. Over the month, Mondacoin, Litecoin, Bitcoin Cash and NEM also saw spikes in investment volumes.
Bitcoin Trading Dominates The Japanese Cryptocurrency Market
The report also details how the cryptocurrency market is almost completely dominated by Bitcoin trading. In March, the leading cryptocurrency’s volume of spot trading boasted around a 617.3 billion yen figure (which translates to around $5.8 billion USD). This was a whopping 11 times more than the second-most traded digital asset, Ripple’s XRP recorded in the same month.
The value of Bitcoin is March took a bearish knock, with a 25% decrease over the 31 days. Starting the month with a price tag of around $8,600 USD, Bitcoin price plunged down below $5,000 USD to pick up again. However, the cryptocurrency still ended the month with a 25% decline at $6,400 USD.
Since then, the cryptocurrency has picked up to flirt between $9,200 USD and $9,000 USD over the past few months, finding support around the $9,000 USD mark. While this might not be linked to the outbreak of the virus, it certainly is plausible that investors are interested in the digital asset as a result of uncertainty in economic and fiat stability.
Investors Withdrawing Bitcoin
As reported earlier this week, the market has seen a recent mass withdrawal across platforms. This bullish news could imply that traders are looking to hold their assets in a more secure location for long-term investment. It remains to be seen whether this too correlates with pandemic-related uncertainty or whether the trend is driven by influence and sentiment across the industry.