The Japan Virtual Asset and Crypto Exchange Association (JVCEA), a self-regulatory organization for the crypto industry in Japan, recently released a report on Japanese holdings of major crypto currencies in March.
169,376 BTCs remain in Japanese exchanges, an increase of more than 11% from the previous month. XRP rose 6.4% to XRP 3.2 billion. Ether rose more than 5.7% to 1.14 million ETH.
In addition, the number of Bitcoin Cash (BCH), Monacoin (MONA), Litecoin (LTC) and NEM (XEM) also increased slightly in March.
Recently a record amount of Bitcoin was withdrawn from the exchanges
Bitcoin’s spot trading volume was 617.3 billion yen (about USD 5.8 billion) in March, 11 times the volume of trade in XRP, the second most traded crypt currency that same month.
Black Thursday and the Japanese market
In March, Bitcoin was down more than 25%. It started the month at about $8,600, but on March 12, known as „Black Thursday,“ it briefly dropped below $5,000.
The reason why Japanese investors increased their holdings of crypto currencies is not clear right now.
Boomers and Gen X Interest in Bitcoin Increases During Pandemic
It could be said that the Japanese believers in Bitcoin Rush did not hesitate to buy more after the collapse of the crypto market. It may also be the case that Japanese investors sent more cryptomonies to the exchanges to sell, the opposite case of Coinbase, where Bitcoin recently withdrew.
Speaking to Cointelegraph, Yuya Hasegawa, a market analyst at the FSA Bitbank-licensed crypto exchange, explained that generally price movement and users‘ holdings of crypto currencies are „inversely correlated.
He continued his analysis as follows:
„At the time of the downward price movement, users can be said to send cryptomonies to exchanges in order to take profits or cut losses. Another reason could be a premium of Japan in the BTC market compared to the US dollar-based market after March 12“.
The new director of the Japan Financial Services Agency is „Crypto-friendly“
Investors around the world accumulated cryptomonies during the coronavirus pandemic. According to the UK cryptomontage trading application, Mode, Baby Boomers (born 1946-1964) and Generation-X (born 1965-1980) investors increased their monthly investment in Bitcoin since the beginning of the pandemic.
Mode’s product manager, Janis Legler, noted that his findings „could reveal an unprecedented change in the way investors think today as a result of the global pandemic.