The Crypto industry has gone through a huge downturn during mid-March due to the COVID-19 pandemic. In a recent report by Japan Virtual and Crypto assets Exchange Association, JVCEA, it has been revealed that the number of active crypto users in Japan has decreased in March amid pandemic.
Data was published in March 2020 regarding the number of active crypto accounts that were registered in Japan. The registered crypto accounts were 2,048,501 in February which has decreased to 2,044,806 in March. This is clearly indicating that during the market crash, the number of active crypto users in Japan has decreased.
Active crypto users decreased while fiat deposits increased
As reported by JVCEA that the number of active crypto users decreased in March, the fiat deposits have increased to a quite great extent. It has been reported that in March 2020, the number of fiat deposits on different exchanges has increased in Japan.
However, it has been seen that most of these deposits did not remain with the exchange for a long time. A national state of emergency was also declared by the Prime Minister of the country from April 08. This announcement of emergency was due to the COVID-19 pandemic.
Investors might be preparing for potential risks
This decrease in the active crypto users is also seen as a move by investors to prepare for potential risks. However, this cannot be said that the decrease in the number of active crypto users is indicating a lack of interest in cryptocurrency. This is because Japan is one of the biggest markets when it comes to cryptocurrencies. Now as the price of Bitcoin has recovered very well and is expected to reach $12,000 soon, there might be a rise in the number of crypto users again.
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