How two countries helped drive the recent rise in cryptocurrency prices

Digital currency prices have soared recently, with reports from the past few months showing enormous valuation increases for currencies across the board.

Ethereum, Ripple, Bitcoin and have all experienced exponential growth, with Bitcoin prices rising to $2,480, Ripple reaching a market cap of nearly $10 billion, and Ethereum growing to a total market cap of over $19 billion.

With supply and demand for digital currencies extremely high in both Japan and China, it is no surprise as to why these two countries are helping to fuel the rise in cryptocurrency prices.

Ability to Withdraw in China?

With access to cheap hardware and electricity, China is the prime breeding ground for mining cryptocurencies, with huge mining pools run by exchanges such as BTCC accounting for more than 60% of the bitcoin network’s collective hashrate.

However, the beginning of 2017 saw a governmental crackdown of Chinese-based digital currency exchanges, causing a suspension in all withdrawals, causing the market to suffer heavily with China being one of the top bitcoin markets in terms of trading volume.

Recently, Caixin reported potential changes in the governmental regulatory framework to allow withdrawals last month, specifically mentioning top exchanges OKcoin, Huobi, and BTCC. This potential good news has increased consumer confidence in cryptocurrencies, contributing to their associated rise in value.

Japan: Stepping in to Fill the Chinese Void

With cryptocurrency liquidity in China experienced stagnation earlier this year, the Japanese bitcoin market exploded, with demand reaching new heights.

Previously, Japan represented barely 1% of total bitcoin trading volume, but in recent months estimates put this number as high as 6%, with Japan accounting for nearly 55% of total trade volume on some trading days. This increase in JPY bitcoin trading due to the Chinese inability to liquidate has fueled growth in the digital currency market globally