- Japanese holdings of cryptocurrencies such as Bitcoin, XRP and ETH spiked during the coronavirus pandemic.
- The Japan Virtual and Crypto Assets Exchange Association (JVCEA) reported on this increase in holdings.
- The JVCEA noted that 169,376 Bitcoins were held on Japanese exchanges in March.
- XRP holdings were up 6.4% to 3.2 billion XRP and Ether holdings were up over 5.7%.
The Japan Virtual and Crypto Assets Exchange Association (JVCEA) has published a report detailing the Japanese holdings of major cryptocurrencies in March. The report noted that 169,376 Bitcoins were held on Japanese exchanges – over 11% increase from the previous month.
XRP holdings were up 6.4% to 3.2 billion XRP and Ether was up over 5.7% to 1.14 million ETH. Additionally, Bitcoin Cash (BCH), Monacoin (MONA), Litecoin (LTC), and NEM (XEM) holdings also surged in March. With 617.3 billion yen (about $5.8 billion), Bitcoin spot trading volume also spiked in March. This is 11 times more than the trading volume of XRP, the second-most traded digital asset that month.
March was not a great month for Bitcoin. The price fell by over 25% and plummeted below $5,000 on March 12, aka the “black Thursday.” The reason why Japanese investors increased their cryptocurrency holdings remains unclear as of now.
According to a Cointelegraph report, Yuya Hasegawa, an analyst at Bitbank exchange, explained that generally price movement and the user’s holdings of cryptocurrency are “correlated inversely”.
In the time of downward price movement, you can say that users send cryptos to exchanges for the purposes of taking profits or loss cutting. Another reason might be a Japan premium in the BTC market compared with the US dollar-based market after March 12th.
During the pandemic, investors across the globe have collected cryptocurrencies. According to Mode, Baby Boomers (born 1946-1964), and Generation-X (born 1965-1980) investors increased their monthly Bitcoin investment since the start of the COVID-19 pandemic.
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