- Apr 2017
This chart demonstrates Japan's struggling economy and poorly performing 10-year yields. For the first time since 2007, Japan's 10-year yields have declined back to 0%, and yields could drop to a negative percentage rate at any time in the near future, as the Japanese government continues to print massive amounts of cash.
A yield is referred to as the income return on an investment, usually expressed as an APR (annual percentage rate). Japan's 0% yield demonstrates a zero percent profit margin or return for its investors. And as the Japanese government continues to print large amounts of money, the inflation rate of the Japanese yen will increase and the value of the Japanese yen will decrease. And as we've seen in past events, an increase in Bitcoin's price is usually correlated with economic instability and financial uncertainty of a large Bitcoin market.
For example. when a Chinese exchange was believed to be the largest trading market volume of Bitcoin, the devaluation of the Chinese yuan caused by rising US inflation rates led to an increase in Bitcoin price. As the Chinese yuan weakened, traders and investors within the region looked for alternative WMP (wealth management products) and safe haven assets - Bitcoin.
The Bitcoin exchange market in Japan currently holds 41% of the global Bitcoin exchange market share, followed by the United States at 30.6%. Therefore, the economic instability of Japan and the weakening of the Japanese yen has a significant impact on the demand for Bitcoin, affecting 41% of the global Bitcoin exchange market.
In the past week, the daily trading volume of the Japanese Bitcoin exchange market increased substantially, and Bitcoin's price increased from $1175 to $1257.