Japanese Yen has overtaken the US dollar in worldwide Bitcoin Trading for the first time, according to data by Coinhills. A total of 490,925.45 BTC were traded against JPY over the last 24-hour trading volume on January 29.
The data suggest that USD accounted for 45.80 of the total Bitcoin trade while 49.10 percent were traded against JPY. Even more surprising is the fact that both Japanese Yen and US Dollar account for more than 90% of the total Fiat currency trading, while the rest of the fiats like Korean Won, the Euro, and the British pound only amount to less than 2 percent of the total trading volume.
The Miraculous Rise Of Japanese Yen
The latest report of JPY overtaking USD is quite astonishing since the Japanese Yen only accounted for 21% of the total trading volume in November last year. However, things have changed drastically over the two months. Whether Yen is able to hold its strong trading position, it is to be seen as the Bitcoin prices have failed to rise above $3500 mark.
Japan is also among the very first countries to have friendly crypto regulations in place, allowing the use and free trade within the country, which might be another reason for the rise. The country, known for its technological advancements, has paved the way for the cryptocurrency market to flourish.
In December last year, a report suggested that Asia has more impact on Bitcoin prices than Europe and America. To support its claims the report cited that developments in Asia have impacted the Bitcoin market by an average of 18.61%.
A new partnership between the Blockstream, Digital Garage, and Tokyo Tanshi is also set to launch a stable coin which will be supported by the Japanese Yen. In October last year, the government gave formal approval to the crypto industry to regulate itself. This decision increased the capabilities of Japan Virtual Currency Exchange Association (JVCEA). All these factors have surely added to the sudden rise of JPY/BTC trading pair to leave USD/BTC pair.
The recent turn-around for Japanese Yen might be surprising for many, but if you have been following the crypto trends, East is quite at the forefront when compared to the West. Most of the countries in the West are critical and cautious, but East China, Japan and Korea are the hubs for crypto enthusiasts and industries related to cryptos like the mining industry.
Whether Japanese Yen hold onto its top position for long we would have to wait and watch. Crypto trade market has been subjected to volatility, and the position of any trading pair changes, but JPY will still remain one of the two at the top.