China’s new decision on Bitcoin, does not dampen the existence of this virtual currency in other countries. As reported by cointelegraph.com, Japan is now the largest Bitcoin exchange market with 50.75 percent market share of the global Bitcoin exchange market. Vice Chairman of BitFury, George Kikvadze, did the analysis. He attributes the surge in trading volume of the Bitcoin exchange market in Japan due to China’s new regulatory issue against Bitcoin.
According to various trusted Bitcoin market data providers such as CryptoCompare, China now accounts for only 6.4 percent of global Bitcoin trade.
A twitter account Joseph Young @iamjosephyoung, wrote that CryptoCompare shows that Japan accounts for more than 50% of all trade #bitcoin. Chinese merchants have moved to Japan. China is less than 7%.
Before the ban on national Bitcoin exchanges by China was applied, the digital currency exchange market in the US consistently ensured its position as the world’s largest market. However, traders turned to the Bitcoin exchange market in Japan. This sudden migration of virtual currency traders led to a short-term surge in Japanese trading volume, allowing the market to overtake the US more than 20 percent of the global Bitcoin exchange market share.
Contrary to many non-positive reports, leading developers, analysts, researchers and experts in the Crypto and Blockchain sectors including Litecoin creator Charlie Lee and billionaire investor Tim Draper expressed their optimism about the termination of China’s Bitcoin exchange market. Lee stressed that the Chinese government can no longer manipulate the market, as it has done since 2013.
Lee said that:
“This is good. China can no longer play with the market by banning Bitcoin. Cryptocurrency can not be killed by any country. One solution to centralized exchange is decentralization. “
As Lee pointed out, the exit of the Bitcoin exchange market in China should really affect about 10 to 15 percent of traders in the global Bitcoin exchange market. However, speculators and impatient traders began a big sell-off as the Chinese government issued its new regulation, which led to a big correction on Bitcoin prices.
Over the next few weeks, the global Bitcoin exchange market will stabilize, as traders move from the Chinese market to South Korea and Japan, two markets that have developed regulation, industry standards, and significantly more efficient policies for exchange and cryptocurrency users.
Lee and Draper noted that the closure of the Chinese Bitcoin exchange market could lead to stabilization of the global Bitcoin exchange market, which may be of benefit to Bitcoin in the long run.