JVCEA, a Japanese self-regulatory body, has released data showing the number of Japanese crypto traders has decreased in March during the middle part of the Covid-19 pandemic.
The overall activity on crypto exchange has decreased before the state of emergency has been declared. The data shows that there was a spike in fiat currency deposits.
In March 2020, Japan Virtual and Crypto assets and Exchange Association shows that the number of active traders on crypto has decreased from February 2020 of 2,048,501 down to 2,044,806 in March.
There have been almost 4,000 few accounts that did not trade any of their digital assets. A Market Analyst from BitBank, Yuya Hasegawa, said that the number of fiat currency deposits had increased right after showing that the crypto traders have decreased. This may be due to the expenses for households that will receive ¥100,000 or roughly $940.
Payments have been made stimulus by the Japanese government. Many of the deposits made did not stay on the exchange platform for long. Japanese Prime Minister Shinzo Abe declared a national state of emergency in Japan that began April 8, 2020.
Yuya Hasegawa also 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Corona Shock hit the wider financial market and generated demand for margin calls, a good chunk of investors may have withdrawn all their funds from crypto exchanges to scrape up some cash.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.” With the decrease amount, however. Hasegawa also said it is necessary to say that the Japanese users have lost their interest in cryptocurrencies.