The cryptocurrency market has witnessed a great number of investors in Japan buying Bitcoin (BTC) after its recent decline, according to Cointelegraph website.
The number of Japanese investors who bought Bitcoin on the local crypto platform BitBank rose by 40% during the second week of this month.
Bitcoin hit its lowest level in 2020, reaching $3,775 on 12 March. Bitbank analyst Yuya Hasegawa said on his blog that the cryptocurrency has benefited from strong demand from Japanese retail investors who sought to make huge returns by buying at dips.
The analyst contrasts the current situation to the period from November to December 2018 when the Bitcoin ground down.
“Interest in the crypto market as a whole went down and bitbank’s daily account registrations took a hit,” Hasegawa said.
However, the Bitcoin rebounded 60 percent and sustained strong volumes just after the recent decline, which according to Hasegawa indicates “the intent to buy the dip is quite obvious”:
“When we take the increased daily account registrations into consideration, we can once again deduce that the current market recovery is driven largely by retail investors. Furthermore, as Forbes reports, this phenomenon is likely to be global, as Kraken, a San Francisco-based crypto exchange, experienced a steep increase in account registrations after March 12.”
Halving is one of the major events occupying the minds of crypto community currently, and it means slashing the rewards given to Bitcoin miners.
The process is mainly aimed at reducing the reward of miners and thus preventing the cryptocurrency from inflation.
It is very similar to what happens to gold. The more they mine gold, the more they deplete the mine.
A total of 18.23 million coins have been mined, representing nearly 86.82% of the total number of Bitcoin to be ever produced, according to bitcoinblockhalf website.
Once 21 million coins are mined, the network will never produce anymore.
On the other hand, miners stopped mining new Ripples (XPR), and they currently trade one third of the available XPR and hold the remaining two thirds.