JPY, USD, and KRW accounts for 0ver 90% of Bitcoin traded on exchanges

By Samuel Haig - October 17, 2017 (news.bitcoin.com)

CNY to bitcoin trading now accounts for approximately only 1% of all bitcoin trade occurring on exchanges, according to cryptocompare data. The Chinese cryptocurrency crackdown has drastically altered the global composition of bitcoin markets. 60% of bitcoin trading currently occurs through Japanese markets, with the U.S. and South Korean markets also comprising a significant share of the global bitcoin trade.

Japan Now Exerts Dominance Within the Bitcoin Markets

Last week, news.Bitcoin.com published a story that explained Japanese bitcoin trading comprises approximately 60% of all volume. Japanese trading volume spiked last year, following Japan’s passing of legislation recognizing bitcoin as a legitimate means of payment.

Approximately 80% of JPY/BTC trade during the last 24 hours took place on Bitflyer and Bitflyerfx. Coincheck is currently the second largest Japanese exchange, accounting for approximately 15% of trading. The third largest exchange, Zaif, comprises 4% of trading volume. As such, Japan’s bitcoin market is among the most centralized, with approximately 99% of BTC/JPY trading volume occurring on just three exchanges.

USD Comprises the Second Largest Bitcoin Market, Accounting for 25% of All Trading

The share of global bitcoin trading done in USD has fluctuated greatly over the years. During bitcoin’s infancy, the overwhelming majority of bitcoin trading was conducted in USD. Following China’s dramatic entrance into bitcoin markets at the end of 2013, the share of total trade conducted in US dollars fell to less than 10%. Since China’s crackdown on margin and cryptocurrency trading, dollar trade has risen to approximately one-quarter of all trade.

Bitfinex is the dominant exchange for USD trading, accounting for approximately 40% of the last 24h trading volume. Bitstamp is second, with 13%, followed by Gdax – 12%, Gemini – 7.5%, and Poloniex – 7%. The USD bitcoin markets are among the most decentralized, with approximately 90% of volume being shared across the top seven exchanges.

South Korea Has Emerged as a Significant Player in the Bitcoin Markets

Currently, South Korean volume accounts for roughly 9% of all bitcoin trading. The majority of South Korean trading occurs on Bithumb, which currently comprises 65% of 24-hour trade volume. Coinone and Korbit each account for approximately 17% of trade respectively. Bitcoin to Euro trading is the fourth most dominant sector of the bitcoin markets, comprising 3.3% of 24-hour trade volume.

Over the last twelve months, Chinese exchanges have gone from hosting over 90% of all bitcoin trade, to just 1% of the global volume. China is now the fifth largest market for exchange-based trading, with approximately 4600 bitcoins being traded for CNY on exchanges.

The Diminishing Presence of Chinese Bitcoin Exchanges

In January, it was announced that the People’s Bank of China would be monitoring the operations of the country’s major bitcoin exchanges. Soon thereafter, the PBOC placed restrictions on the amount of leverage offered for margin trading by Chinese exchanges, amidst accusations that high leverage trading may have been used to manipulate prices.

The ban on margin trading inspired speculation that bitcoin would not be able to sustain the bull trend leading into 2017 that had seen bitcoin break above $1000 USD for the first time since 2014. Ultimately, the clamp-down on Chinese margin trading appeared to have been interpreted as a positive indication of the cryptocurrency’s maturation, as prices continued establishing all-time highs despite the major Chinese bitcoin exchanges accounting for approximately 10% of total overall market share respectively.

Speculations of bitcoin’s inability to support record prices without a dominant Chinese presence again circulated in the run-up to most of China’s cryptocurrency exchanges ceasing operations by the start of October. With bitcoin setting new all-time price highs, it would appear that the bitcoin markets have emerged unscathed by the closure of most Chinese cryptocurrency exchanges.

Images courtesy of Shutterstock, Cryptocompare

Samuel Haig

Samuel Haig is a cryptocurrency and economics journalist who has been passionately involved in the bitcoin space since 2012. Samuel has written about the disruptive potential of cryptocurrency with regards to the dialectical relations within contemporary neoliberal capitalism.