Despite Japan’s friendly attitude toward Bitcoin, trading in Japanese Yen has slowed to a trickle.
Bitcoin’s price is not one single entity, and the price depends on multiple factors. In just a few days, Bitcoin abandoned its usual risk profile, where Japanese and US-based investors set the pace.
The share of Japanese Yen trading fell from a share of around 40% to just 16%. US dollar volumes increased to 34%, but also remain low in absolute numbers, at around $70 million in 24 hours.
Tethers Take Over the Show
The most impressive change is in the activity of Tethers (USDT). The tokens, which have a limited supply, have a growing influence on the markets. On some exchanges, USDT is a safe haven from price fluctuations, though not a substitute for actual fiat. The share of USDT trading for Bitcoin deals is more than 34%, a record. At the same time, USDT trading takes up more than 16% of all crypto deals.
One of the reasons for the recent BTC drop is the belief that the hype around the Consensus 2018 conference may have caused some preemptive selling. Believing that BTC would be sold during the conference became a self-fulfilling prophecy.
But the drop in BTC prices already started ahead of last weekend. Trading volumes also dwindled overall, to below $7 billion in 24 hours. For now, it is unclear what causes the fluctuation, and some analysts see BTC going down to $7,500.