Mosaic, a cryptocurrency data and research company, released a report which shows that crypto events in Asian countries usually impact on Bitcoin’s price. The report also noted that Mandarin, an Asian language is the second most supported language on Crypto exchanges. In the same vein, most companies sought the Asian countries as a fertile ground to launch their exchanges.
Events in Asian Countries Contribute to the Volatility of Bitcoin
Mosaic reports that significant changes in the price of Bitcoin can be attributed to Asian news. For instance, in 2013, 11 events in this continent were able to impact on Bitcoin’s price for about ten days, and its volatility moved from 0.5% to 57%. On the other hand, this is a coin that has maintained a 3.5% volatility since 2018 and 5.5% over the past 30 days.
It was also noted that most cryptocurrency exchanges use 24 languages and Asian languages are a major part. 65% of exchanges supported Mandarin which places it as the second most used language. Other Asian languages that are commonly supported are Vietnamese, Korean, Indonesian, Japanese, Cantonese, Hindi, and Thai.
More Exchanges Are Based in Asian Countries
Regarding crypto exchanges, 20 out of 37 exchanges that were launched in 2017 are based in Asian countries. Nevertheless, this is no longer the case because the number of exchanges registering in these countries has slowed down. This was attributed to the recent regulatory policies in China which may have made companies reluctant to seek solace in these countries.
Also, 11 out of the 17 largest mining pools are based in these countries. These are locations where two-thirds of the world’s mining hash rates are based. Therefore, these countries were significantly contributing to how the price of Bitcoin changes. The same can be said about their control of the mining sector of this industry.
Western Countries May Not Have Control on Market’s Operation
These highlights may change a user’s opinion that news arising from the U.S. is the major controlling factor of the price of virtual currencies at any point in time. This is because of the SEC regulations and charges that may have stirred anxiety among cryptocurrency enthusiasts.
Others may have been falsely led to believe that Western countries have more control over the way the crypto market operates. This is because they dominate the real world market. However, this report has clarified that Asian countries have the upper hand when it comes to continents influencing the price of these digital assets.