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Bitcoin price is nearing its all-time high price,
prior to the official decision of the US Securities Exchange Commission to decline the Winklevoss twins’ Bitcoin ETF COIN set at $1,277. On Saturday, the global Bitcoin exchange market opened at $1,257, maintaining Friday’s momentum. On April 21, Bitcoin price briefly surpassed the $1,270 mark, positioning itself to surpass its all-time high price. At today’s peak, Bitcoin price increased up to $1,259 but stumbled, moving back down to $1,220. The market closed at $1,243, with a slight 1.23 percent decrease over the past 24 hours.
Still, Bitcoin price increased by over four percent on average in the past week, from around $1,180 to $1,243. Considering the optimistic trading activity of the Japanese exchange market and increasing interest in Bitcoin in the Indian market, Bitcoin price is expected to carry its momentum throughout next week.
The Japanese Bitcoin exchange market. which holds almost 50 percent of the global Bitcoin exchange market share with a $121.5 mln daily trading volume, is demonstrating a high level of trading activity, with an increase in Bitcoin price and trading volume.
As shown in the price chart provided by digital currency market data company Brave New Coin below, the daily trading volume of the Japanese Bitcoin exchange market has increased consistently over the past week, distancing itself from the US Bitcoin exchange market in terms of trading volume and market dominance.
There exist two main reasons why the interest in Bitcoin is increasing at a rapid rate in Japan, as shown in the trading volume and price chart above. First, as noted by financial analyst and Welt Senior Editor Holger Zschaepitz, Japan’s 10-year yields dropped back to zero percent for the first time since 2007.
In conventional finance, the yield represents the income return on an investment that is normally expressed as an annual percentage rate. Japan’s zero percent yield shows a severe economic instability and as Zschaepitz explained, the Bank of Japan is attempting to print massive amounts of the Japanese yen in order to increase the inflation rate and keep the economy afloat.
If the inflation rate in Japan rises, like China, investors usually move to alternative safe haven assets and wealth management products (WMPs) such as gold and Bitcoin. In terms of liquidity and mid-term profitability, Bitcoin appeals to a larger market and thus, in times of financial instability and economic uncertainty, the demand for Bitcoin increases.
Moreover, the Japanese mainstream media have been offering extensive coverage on Bitcoin, particularly due to the acceptance of Bitcoin by Bic Camera and the legalization of Bitcoin by the Japanese government.
Chuck Reynolds
Contributor
