Main Points:
- Bitget predicts Japan will reach 500,000 daily crypto traders by the end of 2024.
- Overview of the Japanese crypto market dynamics and trader preferences.
- Impact of global regulations and local market characteristics.
- Strategic insights for investors focusing on the Japanese market.
Japan’s Crypto Trading Surge: A Detailed Forecast
Bitget’s Prediction
Bitget, a cryptocurrency exchange, forecasts that the number of daily active traders in Japan will reach approximately 500,000 by the end of 2024. This prediction highlights Japan’s growing engagement in the cryptocurrency market, driven by increasing adoption and regulatory clarity.
Current Market Dynamics
As of April 2024, Japan has between 310,000 and 360,000 active daily traders on centralized exchanges. This places Japan’s market size between those of Turkey and Indonesia, and at about two-thirds the size of South Korea’s market.
Key Characteristics of Japanese Crypto Users:
- Preference for spot trading over derivatives, with popular assets including Bitcoin, Ethereum, XRP, Solana, and Dogecoin.
- Restricted to trading Financial Services Agency-approved tokens with a maximum leverage of 2x for derivatives.
- Long-term investment focus due to high tax rates (up to 45%) on cryptocurrency gains, leading to more long-term holders.
Global and Local Influences
Global Regulations:
- Development of global compliance policies and the potential listing of crypto spot ETFs in the U.S. are expected to attract more institutional and retail investors in Japan.
Local Market Factors:
- English proficiency in Japan is moderate, which affects the discovery of new projects.
- High recognition and trading demand for local projects such as Astar Network (ASTR) and Oasis (OAS).
- Significant price increases and traffic for local projects like JasmyCoin (JMY), founded by former Sony executives.
Strategic Insights for Investors
Diversification and Awareness:
- Stay Informed: Regularly update on regulatory changes and market trends both globally and locally.
- Diversify Investments: Spread investments across various asset classes and geographic regions to mitigate risks.
- Long-term Perspective: Focus on long-term gains rather than short-term profits to align with market trends and tax considerations.
Market Opportunities:
- Increased use of decentralized exchanges (DEXs) like PancakeSwap, Jupiter, and Uniswap, with a notable preference for Solana and BSC chains over Ethereum.
- Opportunities in supporting local projects that resonate well with Japanese traders and comply with local regulations.
Japan’s cryptocurrency market is poised for significant growth, with the number of daily active traders expected to reach 500,000 by the end of 2024. Understanding the unique characteristics of the Japanese market, including user preferences and regulatory environment, is crucial for investors looking to capitalize on this growth. By staying informed, diversifying investments, and focusing on long-term strategies, investors can navigate the dynamic landscape of Japan’s cryptocurrency market effectively.
