It doesn’t come as a complete surprise to find out Bitcoin trading is gaining more momentum in Japan. Volatile price movements in the stock markets are forcing investors to look for alternative solutions. Currency speculators in the country are shifting towards cryptocurrency, due to its global appeal and not being tied to banks. This is good news for bitflyer, the country’s largest Bitcoin exchange.
bitFlyer, the leading Bitcoin exchange in Japan, has surpassed 200,000 customers for the month of August. Comparing this to the same period last year, there is a tenfold increase. At the same time, Bitcoin trading volume is on the rise as well. Particularly the first half of 2016 has seen its fair share of cryptocurrency trading.
To put this into perspective, bitFlyer revealed close to US$4.25bn in Bitcoin was traded between January and June. All in all, the trading volume is up by as much as 5,000% compared to 2015. It is also important to keep in mind bitFlyer handles nearly 40% of all Bitcoin volume in Japan.
Bitcoin is A Hot Commodity On bitFlyer
For some reason, the month of July 2016 has caused a massive surge in Bitcoin volume. With over 200bn yen changing hands on the cryptocurrency platform, this is another strong indication Japan seems to warm up to Bitcoin. Whether or not this trend will continue, remains unknown, though.
At the same time, Japan is one of the few countries where regulation is beneficial for cryptocurrency. Regulators have created a law that instils trust in cryptocurrency by default. All of the exchanges in Japan need to improve record-keeping and enforce user protection. Additionally, all suspicious transactions are reported to the Financial Services Agency.
But there is another factor attributing to this sudden demand for cryptocurrency. Yen exchange rates are at a stalemate after the national currency appreciated in value since January. No further movement has been noted in the markets ever since. Investors are always looking for better opportunities, and Bitcoin presents that option.
Furthermore, Bitcoin remains a speculative asset which is getting a lot of attention from investors. Even though cryptocurrency has been less volatile than before, the value of Bitcoin has gone down by quite a margin in the past week. With lower prices, cryptocurrency becomes even more appealing to investors in Japan and beyond.
Header image courtesy of Shutterstock