Crypto Traders In Japan Record Decrease Amid Covid-19 Crisis

Bitcoin trader (Courtesy: Bitcoinist.Com)

The novel coronavirus epidemic has brought the world to a standstill, effecting the world of sports, industries have been shut due to non-production, aviation industries have recorded big loses but the world of cryptocurrency had not reported much of a setback.

However, even before a state of complete emergency was declared in Japan due to the outbreak of the epidemic, the activity in the world of cryptocurrency saw a downfall in the country, suggesting that a lot of crypto traders might have pulled back.

A data in March 2020 by the Japan Virtual and Crypto assets Exchange Association (JVCEA) said that the number of active crypto 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 any digital assets.

A market analyst in bitbank Yuya Hasegaw said that though crypto traders activity has decreased,  the number of fiat deposits on exchanges increased in Japan. 

“When the Corona Shock hit the wider financial market and generated demand for margin calls, a good chunk of investors may have withdrawn all their funds from crypto exchanges to scrape up some cash,” said Hasegawa in an August 3 report.

“Some investors may have done so to prepare for potential risks, such as reduced income and unemployment, that could be caused by a state of emergency.”

Hasegaw, is however, positive and said that a downfall in number of active crypto users in Japan does not necessarily means that his countrymen are losing interest.