Japan’s crypto traders seemingly lost interest just before a state of emergency came in for the nation

• Just before Japan went into a state of emergency due to the spread of COVID-19, the overall activity on many crypto platforms across the nation decreased. 
• This is mainly due to the fact that there were many spikes in Fiat deposits in the run-up to action being taken due to the virus.

Just before Japan went into a state of emergency due to the spread of COVID-19, the overall activity on many crypto platforms across the nation decreased. This is mainly due to the fact that there were many spikes in Fiat deposits in the run-up to action being taken due to the virus. A report was published earlier this year in March by the Japan virtual and crypto-assets exchange Association. It highlights that the number of active crypto accounts registered in the country decreased from just over 2,048,500 in February to around 2,044,800 in March 2020. This would mean that there were about 3700 for your accounts which may not have got involved with digital assets during this time.

A market analyst at bitbank, Yuya Hasegawa has reported that even though activity amongst many crypto traders decreased throughout the month of March, a number of Fiat deposits on many platforms increased throughout Japan. A big reason for this could’ve been due to the fact that households are expected to receive around ¥100,000. 

This would be equal to around $940 as a stimulus payment promised by the government of Japan. But according to the analysis analyst, many of these deposits did not stay in exchanges for very long as the Prime Minister of the country declared a national state of emergency on the 8th of April 2020. 

In a report from the 3rd of August this year, the analyst said:

“When the Corona Shock hit the wider financial market and generated demand for margin calls, a good chunk of investors may have withdrawn all their funds from crypto exchanges to scrape up some cash. Some investors may have done so to prepare for potential risks, such as reduced income and unemployment, that could be caused by a state of emergency.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!