Coronavirus Causes Decrease in Activity of Crypto Traders in Japan
The Japanese regulator JVCEA has published a report that says the number of active traders in the country has decreased since March 2020.
Japanese people trust fiat currencies more
After the announcement of the state of emergency, activity on cryptocurrency exchanges decreased as people began to save more fiat money as a "safety cushion" for the future.
According to the report, the number of active trading accounts for the month decreased by almost 4,000.
Deposits on exchanges have grown
Against the background of a decrease in the number of active traders, the average size of fiat deposits increased. This may be due to the fact that the country's government allocated financial assistance to households in the amount of about 940 dollars (100,000 yen), some of which remained in the Japanese accounts.
After the country's Prime Minister Shinzo Abe declared a state of emergency on April 8, many crypto traders exchanged digital assets for fiat to insure themselves against worsening personal financial situation, job loss and other possible shocks.
Trade hasn't stopped
Despite this data, the general interest in cryptocurrencies in Japan has not decreased, according to local trader Yuya Hasegawa. At a minimum, the recent rise of Bitcoin to the level of $ 12,000 and the growth of the entire Altcoin market can show the popularity of the cryptocurrency.