Holger Zschaepitz, the senior editor of the financial desk and market maniac at Welt, shared a chart which demonstrated Japan’s struggling economy and its poorly performing 10-year yields.
Seeking alternatives
As the Japanese government continues to print large amounts of money, the inflation rate of the Japanese yen will likely increase proportionally and the value of the Japanese yen will likely fall in the mid-term. Analysts expect that such performance of Bitcoin’s largest exchange market could potentially affect the Bitcoin price.
An increase in Bitcoin price is usually correlated with economic instability and financial uncertainty of a large Bitcoin market. For instance, when the Chinese Bitcoin exchange market was believed to be the largest Bitcoin market in terms of trading volume, the devaluation of the Chinese yuan caused by rising US inflation rates led to a sudden surge in Bitcoin price.
In other words, as the Chinese yuan weakened, traders and investors in the region sought out for alternative wealth management products (WMPs) and safe haven assets such as Bitcoin.
41 percent of the global Bitcoin exchange affected
According to various Bitcoin market data providers including Brave New Coin, the Japanese Bitcoin exchange market currently holds over 41 percent of the global Bitcoin exchange market share, followed closely by the US at 30.6 percent.
Thus, the economic instability of Japan and the weakening of the Japanese yen have a significant impact on the demand for Bitcoin in the local market.
In the past week, the daily trading volume of the Japanese Bitcoin exchange market increased substantially and as a result, Bitcoin price surged from around $1,175 to $1,257. Bitcoin price in the Japanese exchange market also demonstrated a 1.47 percent increase in the past 24 hours, showing a consistent increase in demand for Bitcoin.
