Trading BTC/JPY: What you should know

As the world’s first and largest (by market cap) cryptocurrency, Bitcoin is perhaps the most influential of the crypto world. As such, many fiat currencies are used every day to acquire Bitcoin with much of the activity going on in Asian markets. As one of the most influential economies in the East, Japan is also a prominent player in the global crypto market, with the country’s currency, the Yen, being used to purchase Bitcoin.

Often exchanged for one another, it is only natural that Bitcoin and the Yen will be paired together as a financial instrument on the eToro platform. The BTC/JPY crypto/fiat pair gives eToro traders and investors an additional possibility to diversify their portfolios and add more depth to their trading experience. The BTCJPY pair represents the value of a single Bitcoin in Yen.

65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This is not investment advice.

Yen and Bitcoin: Ups and downs

The BTC/JPY crypto/fiat pair is exposed to a variety of factors that could potentially impact its price. Simply put, it is exposed both to factors that relate to its currency side and to its crypto side. The Yen’s price could be influenced by factors such as Bank of Japan rate decisions, the Yen’s often inverse relationship with the Nikkei index (since the Japanese economy is heavily dependent on exports) and many other aspects of the Japanese and global economy.

Bitcoin, on the other hand, could be impacted by factors relating to the cryptocurrency market, such as a regulatory crackdown, for example. While Bitcoin is very popular in Japan, it is also the target of many regulatory restraints, somewhat stinting its growth in the country. Many countries around the world have placed an emphasis on understanding and regulating the crypto market. However, Japanese authorities had a very serious reason to do so.

Bitcoin in Japan: The hack that changed everything

In January, 2018, Coincheck, a large Tokyo-based crypto exchange, was hacked and the perpetrators got away with no less than $500 million (mostly in NEM tokens). The hack prompted Japanese authorities to crack down on the crypto market, putting in place strict regulations that, among other things, require crypto exchanges to provide proof that they are secure.

As a result, the Japanese crypto industry took a hit, as several exchanges opted to shut down, rather than beef up their security. And that was only the beginning: Japanese regulators began to monitor the market closely, constantly introducing new guidelines for exchanges – and this has impacted the entire crypto market.

To get a better understanding of just how much influence Japan has on the global crypto market, one can simply follow the events that took place in June, 2018. At that time, Japan’s financial regulator ordered the country’s largest crypto exchanges to suspend the opening of new accounts, while putting in place new measures to prevent money laundering. Following this instruction, Bitcoin prices fell 8% globally.

How to trade BTC JPY

The BTC JPY pair is available for trading and investing on the eToro platform. This pair presents both crypto traders and foreign exchange traders with a new method of diversifying their portfolios. Traders who believe Bitcoin will go up in value against the Yen, should open a long (BUY) position on this instrument, and those who believe the opposite, could consider opening a short (SELL) position. Pinning Bitcoin against the Japanese Yen adds new depths and variety to the eToro platform’s already vast offering of financial instruments.

65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

This is not investment advice.

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