China and Japan have Helped Drive a Rise In Cryptocurrency Prices – Part 1
China and Japan have led the foray into the crypto market. More on these from the experts.
Where Is The Current Crypto Market Heading?
As they have soared recently, digital currency prices come with reports from the past few months showing valuation increases for currencies across the board. Most of the currencies, be it Bitcoin, ripple, and Ethereum have all experienced exponential growth as Bitcoin prices rise to $2588, with Ripple reaching a market cap of nearly $ 10 billion and Ethereum grows to a total market cap of over $ 20 billion. This implies that with supply and demand for digital currencies that are high in both Japan and China, it comes as no surprise as to why these two countries help to fuel the rise in cryptocurrency prices.
Ability to Withdraw in China?
China is the prime breeding ground for mining cryptocurrencies with access to cheap hardware and electricity with huge mining pools run by exchanges such as BTCC accounting for more than 60% of the Bitcoin network’s collective hash rate. As it saw a governmental crackdown of Chinese based digital currency exchanges, it has caused a suspension in all withdrawals where it caused the market to suffer heavily with China gaining on being one of the top Bitcoin markets in the terms of the trading volume. Whereas recently Caixin had reported potential changes in the governmental regulatory framework to allow withdrawals specifically mentioning top exchanges, OKcoin, Huobi, and BTCC. This brings a piece of potentially good news as increased consumer confidence in cryptocurrencies contributing to their associated rise in value.
Japan: Stepping in to Fill the Chinese Void
In the case of cryptocurrency liquidity in China, it has experienced stagnation earlier with Japanese Bitcoin market exploded with the demand reaching new heights. It was that previously Japan had represented barely 1% of total Bitcoin trading volume whereas recently it estimates put this number as high as 6% along with Japan accounting for nearly 55% of total trade volume on certain trading days increasing in JPY Bitcoin trading due to Chinese inability to liquidate fueled growth in digital currency market globally.
Solid Alternative Compared to Government Policy
Whereas it is noted that the tightly controlled Yuan in China comes as another reason why cryptocurrency prices have experienced their unprecedented rise in value with the Chinese government having total control over the Yuan’s valuation traditionally devaluing the Yuan to give itself an international trade advantage as the government saw fit.
China comes with a growing amount of private independent wealth with the cryptocurrency becoming viable as an alternative asset class. Thereby the cryptocurrencies are being seen as more accessible less volatile and increasingly stable contributing to their recent growth in value. Whereas the bank of Japan’s policy of quantitative easing has resulted in very low, sometimes even negative interest rates causing digital currency values to rise.
It is a fact that eventually the Japanese government’s QE policy was intended to spur economic growth resulting in significant deflation for the yen causing a similar decrease in investor confidence in the currency with there being no end in sight for this quite this form of the Japanese monetary policy, digital currencies have and are currently being used as an alternative asset class driving their rising value. Whereby virtual currencies are quickly being seen as a better asset class by local investors, they fear the volatility of government interference in their specific economies.
The Ultimate Decisions On Bitcoin Regulation
No matter which crypto coin gains popularity, governmental regulation has influenced the presence of Bitcoin in the Chinese market. This has ultimately helped the coin gain traction amongst developers and investors. The strict controls are viewed as the best from amongst the world countries. As the price cracks down the traditional currency, it also has the flexibility to improve upon the crypto ecosystem. This helps the Japanese gain on the digital platform and thereby move in into the global crypto market without any hurdles. There is a lot more to be considered when it comes to the presence of cryptocurrencies in both of these countries as the Asian market is the most popular target in the current time.
Good Bye And Hold On For The Next Part
Where Bitcoin is gaining the most coveted position as a global currency, there is more to be seen as to what eventually churns out from the market game. The next post throws light on some of the necessary factors that take forward the market in the crypto industry. This is why we are essentially looking at some of the best moments of the global currency market following some of the best currency times for the whole world. See you in the next post and until then adieu, amigos.