Long-Term Inactive BTC Trading Accounts are Actively Participating in Market as Bitcoin Rallies
Cryptocurrency trading accounts which have remained inactive for several months have suddenly turned active. As per Japanese cryptocurrency exchange Coincheck, such dormant accounts are currently contributing doing twice to thrice the usual level of trading volume.
Co-founder Coincheck, Yusuke Otsuka, while speaking to media, pointed out clients who had not traded for some time has become active last week. Otsuka said “Some of our users already have accounts so the initial velocity is high.”
Those who already have trading accounts need not undergo KYC (know-your-client) process to activate their accounts and can start buying and selling cryptos without any delay.
On the contrary, those who are entering into crypto domain only now had to go through KYC process and get approved so that there was a time delays before they could begin trading. Otsuka stressed “This time is different.”
As per Coincheck, the volume of straightforward sale this week was two times the previous week, while there was threefold increase in demand for exchange service.
Otsuka also trusts this shift in client behaviro is linked with the Japanese Covid-19 stimulus payments. Earlier this April, the Japanese government started disbursing 100,000 yen payments, worth roughly $930, to all households.
Furthermore, Oki Matsumoto, CEO of Monex Group, holding company of Coincheck believes that those who missed the gold rally are now interest in Bitcoin.
Gold has been rallying for a while to touch a historical high of $1,980, while Bitcoin has just begun appreciating after facing heavy resistance at $10,000 level.
Matsumoto also gave his opinion on central bank digital currencies, which often hit the headlines:
“I think David Marcus made a mistake. He should have said it was Facebook Token. Because they said it was ‘the future currency,’ the U.S. government criticized it heavily.”
Matsumoto further stated that “the role of Libra might be just to open Pandora’s Box and that was it.” In the meantime, the US continues to lag in the contest mainly because “they crushed Libra by themselves and could no longer say they would start developing CBDC,” as per analysis of Matsumoto.
Some cryptocurrency market experts are concerned about America’s lack of interest to take initiative related to CBDC. Takaya Nakamura, a management executive at Japanese cryptocurrency exchange Fisco, stressed that Japan’s involvement should encourage the US to take the subject of CBDC more seriously.