How Japan has become the biggest Bitcoin market upon Chinese trader's withdrawals
With a 50.75% market share of the Global Bitcoin exchange market, Japan has become the leading country of Bitcoin exchange. With the exit of Bitcoin traders in China, the analysts- BitFury chairman George Kikvadze analyzed that the volume of trade of the Japanese Bitcoin exchange has surged extensively.
The financial regulators, the Chinese government and the local authorities had put in a plea for halting the trading platforms and the Chinese Bitcoin exchanges by the end of September. The 2 biggest exchanges in China- OKCoin and Huobi did not involve in any of the initial coin offerings (ICO) before, so they were granted leeway to operate until 30th October.
But the traders seem unwilling to involve themselves with the government of China and their nature of unpredictability. In a period of three days, the Bitcoin exchange markets of China’s daily trading volume has decreased into half i.e.; from 15% to lower than 7%.
According to crypto compare, being one of the trusted data providers of Bitcoin market, at the time of reporting, China only accounted for 6.4% of the global Bitcoin trade.
Benefits of the US Market
The exchange market of the US has secured the position as the leading market in the world right after the nationwide ban of Bitcoin exchanges by China.
The country's leading Bitcoin exchanges- BTCC, OKCoin and Huobi, and the traders preferred the Bitcoin exchange market of Japan. The Japanese market overtook the US with over 20% in the Bitcoin exchange market share globally, due to a sudden short-term shift of traders to the Japan exchange market.
There occurred a discussion between the prominent developers, researchers, experts and analysts in the Cryptocurrency sector and Blockchain sector, including Tim Draper to shut down the Bitcoin exchange market of China. According to Lee, the Chinese government was able to deceive the market in 2013 but they no longer will be able to do so.
Lee said it was a good approach because China will not be able to play with the Bitcoin market anymore since it is banned. No country can kill cryptocurrency and the best solution to a centralized exchange is to decentralize it with the help of the Decred project team.
Stabilization of Bitcoin
The global Bitcoin exchange market was affected only by 10% to 15% of the trades when China exited the Bitcoin exchange market, as specified by Lee. When the Chinese government banned exchanges, the speculators and the impatient traders started a sell-off resulting in a correction on the price of Bitcoin.
Stabilization in the Bitcoin exchange market is likely to happen since the traders moved from Chinese market to Japan and South Korea, making them the two leading markets that developed to a considerable extent; resulting in better industrial policies and standards and effective regulations for both users and Cryptocurrency exchanges.
Stabilization in the Bitcoin exchange market may be positive for Bitcoin in the future because of the exit of Chinese Bitcoin exchange market, as indicated by Lee and Draper.