Japanese Could Be Possibly Behind Bitcoin’s Wild Surge

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Japanese Could Be Possibly Behind Bitcoin’s Wild Surge

Deutsche Bank AG announced recently that the individual Japanese investors could be behind the ongoing wild surge in bitcoin market. According to Masao Muraki, the global financial strategist at Deutsche Bank, the retail investors usually fail to attain their profit goals in the leveraged foreign exchange trading thus they are slowly shifting their focus to leveraged cryptocurrency trading. Today, Japan alone accounts for more than 50% of the global foreign-exchange trading margin, according to the study conducted by the Deutsche Bank.

Basing on the recent Nikkei – the Japanese news outlet’s report, the Bank stated that about 40% of the foreign-exchange trading in cryptocurrency was transacted in yen denomination between the month of October and November alone and the number could be rising since China is shutting down most of the digital-currency exchange firms due to fraud and hacking scandals.

The report also reveals that about 79% of the foreign-exchange trading accounts are owned by the Japanese investors aged between 30 to 49 years. Therefore, the retail-investor bitcoin surge may not end soon even if the prices begin to decline. In addition, the risk of making losses is higher in the cryptocurrency than in the traditional foreign-exchange trading, basically due to high intra-day volatility.

As the speculation in the cryptocurrency continues to rise to a large scale, it’s necessary to look deeper into the potential threats and opportunities in the market just to ensure that the bubble does not burst to affect the existing international regulations and monetary policies according to the Deutsche Bank.

Cryptocurrencies such as bitcoin have been on fierce fire especially this year and since the beginning of the year, Bitcoin has surged more than 1,500%. For instance, recently, it traded at $16,341, basing on the report given by the CoinDesk’s bitcoin price index. The sharp increase in the bitcoin foreign-exchange trading is significantly becoming a major concern to the global marketplace and as the UBS Wealth Management puts it, the cryptocurrencies such as the bitcoin are increasingly becoming the bubble to finish all the bubbles.

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