Analysts at the Japanese exchange Bitbank noticed the first time reduction in the number of active accounts on the country’s bitcoin exchanges in the past two years. Aggregated data for two years from the local self-regulatory organization JVCEA is posted on the company’s blog.
In the above graph, the constant growth of the indicator since December 2018 was interrupted in March 2020. The account is assigned the category “active” in case of non-zero balance and at least one operation per month.
Bitbank associates such a decrease with the outbreak of coronavirus infection. Experts believe that economic uncertainty and volatility in the cryptocurrency market in March could limit the desire to trade and cause the need for fiat. They emphasize that the withdrawal of funds was not dramatic in historical retrospect.
“Corona Shock hit the wider financial market and generated demand for margin calls, a good chunk of investors may have withdrawn all their funds from crypto exchanges to scrape up some cash. Or, 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.” the analysts noted.
Experts do not believe that the decline in activity on Japan’s bitcoin exchanges will develop. It is noted that after the stabilization of the situation in the stock market in April and May, the trading volumes of the first cryptocurrency has risen.