A lot of people lost their job during COVID-19 pandemic. As a result, they are looking for another source of income. Some started to invest in commodities and securities such as stocks or precious metals. Some people also chose cryptocurrency. Many cryptocurrency coins experienced increasing in their market cap. A lot of people who were not familiar with crypto market started to educate themselves and became crypto investor or trader. But, statistics from Japan show that number of crypto traders decreased in Japan during the COVID-19. Interestingly, Japanese had different reaction to COVID-19 pandemic compare to people in other countries.
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Number of crypto traders decreased in Japan during COViD-19 pandemic
Recently, Japan Virtual and Crypto Assets Exchange Association (JVCEA) reported that the number of active traders in Japan decreased in March.
Statistics from the Japan’s-regulatory body (JVCEA) show a decrease on overall activity on crypto exchange and an increase in fiat deposits. In fact, Japanese had a different reaction compare to people in other countries.
The data published in March, 2020 show active crypto traders decreased from 2,048,501 in February to 2,044,806 in March. It shows that around 3,695 accounts did not trade any cryptocurrency at all.
Less activity, but more deposits
The Market Analyst at bitbank, explained that although crypto traders’ activities decreased significantly, the amount of fiat deposits on exchange had a significant growth.
Yuya Hasegawa believes that the reason may be that people expect to receive the encouragement payment and they just hold their assets in account and do not use for any purpose. As Wallebi reported previously, Japan’s government proposed an encouragement payment to all citizens equivalent to 100,000 yen.
Shinzo Abe the Prime Minister commented, COVID-19 pandemic was a shock to people. Many people start to withdraw their money from exchanges and their other accounts. It has two reasons; some may have needed much cash because they lost their job. Some may scare to take risks anymore.