Before the state of emergency was formally declared slowing the pandemic spread in Japan. Total crypto-exchange activity decreased as fiat deposits peaked.
The number of active crypto accounts registered in the country decreased from 2.048.501 in February to 2.044.806 in March. According to data published by the Japan Virtual and Crypto Asset Exchange Association (JVCEA) in March 2020. So 3,695 fewer accounts might not have traded digital assets.
Deposits are growing, activity is shrinking
Yuya Hasegawa, a bitbank market analyst, stated that although activity among crypto traders fell in March, the number of exchange fiat deposits in Japan increased.
Much of this may have been due to households hoping to obtain a stimulus payment of 100,000 yen — about $940 — which the Japanese government had announced. Many of these deposits, the analyst states, did not remain for long on exchanges. As of April 8, Prime Minister Shinzo Abe declared Japan a national state of emergency.
“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Corona Shock hit the wider financial market and generated demand for margin calls, a good chunk of investors may have withdrawn all their funds from crypto exchanges to scrape up some cash,” Hasegawa said in a study dated August 3. “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.”
Trading in Japan
Nonetheless, Hasegawa says a small decrease in the number of active accounts “does not necessarily mean. That the Japanese users are losing interest in cryptocurrencies.”
If anything, the behavior could have accelerated as Bitcoin (BTC) looked at its rise to $12,000 to be especially bullish. Cointelegraph estimated that this week’s volume of trading for crypto accounts with traditionally low activity in Japan was 2-3 times greater.