Japan, The New King Of Bitcoin Market
As you may have heard, the last days in the cryptocurrency industry were all about China. Everyone panicked as China’s financial regulators have officially asked Bitcoin exchanges to shut down their services. ViaBTC, Yunbi and BTCC already closed their doors. Unlike these, OkCoin and Huobi were allowed to operate until October 30. This decision was made due to the fact that OkCoin and Huobi have not been involved in any ICOs in the past.
Traders already found a solution
It wasn’t much until the Chinese traders found solutions. Some of them migrated their ICOs to Gatecoin – a Hong Kong a bitcoin token exchange. According to CryptoCompare, China halved its daily trading volume over a period of 3 days. With the news laws – more and more traders migrated to Japanese Bitcoin exchange markets. This led to a surge in the Japan trading volume – which is now up by 20% compared to USA. Furthermore, Joseph Young made a print screen at the exact moment when Japan had 51.33% of the Bitcoin trading volume. Another interesting fact, there is still a 6.37% bitcoin trading volume in China – even though the rate increased since Young posted the tweet to a 14%+ trading volume in just a few hours.
Is this good news for Bitcoin?
Definitely. Back in 2013, China could manipulate the market – and that wasn’t really good for Bitcoin. Charlie Lee, the Litecoin creator declared : This is a good thing. China can no longer play with the markets by banning Bitcoin. Cryptocurrency cannot be killed by any country.
As multiple crypto traders mentioned on Twitter, the panic that flooded the market was unnecessary. China represented only 10-15% of the cryptocurrency market. Instead, the Bitcoin price went below $3,000 – a major correction in the Bitcoin price.
But the good news are just coming in. In the past weeks, the Bitcoin exchange market will stabilize as the Chinese traders will move to Japan & South Korean exchange markets. A few benefits of these two are the high industry standards and the fact that they both developed efficient regulations for both exchanges and users.
In the long run, the China exit from the bitcoin exchange market might be a good thing. Chinese traders will move all to Japan & South Korean exchanges and Bitcoin will probably reach a new all-time high this year, again.