It took less than a month for bitcoin investors to wiggle off China’s cryptocurrency crack down and Wall Street naysayers. On Friday, the price of bitcoin hopped within striking distance of $6,000 spil optimism surrounding the cryptocurrency reignited thanks te part to traders using the Japanese yen.
That comes after the price of bitcoin slok spil low spil about $Three,000 ter mid-September, after Chinese authorities shuttered local cryptocurrency exchanges, while J.P. Morgan CEO Jamie Dimon dubbed bitcoin a “fraud.”
But it wasgoed neither the U.S. strafgevangenis China, which have predominated the cryptocurrency markets since its inception, that evidently led to the price of bitcoin to come back up. Until recently, China has represented the majority of bitcoin trading since about late 2013. Te 2018 alone, the Chinese yuan represented 96% of all trading with bitcoin, according to gegevens from CryptoCompare, helping the price more than dual that year. Te fact, trading ter China has bot so intense that since 2010, the vast majority of trades has still largely bot predominated by the yuan.
But since Chinese investors began leaving major bitcoin exchanges for over-the-counter markets, its bot the Japanese yen that’s begun taking overheen the role that the yuan once held. Overheen the past month, bitcoin trading using the Chinese yuan glided to 5% of total trades, according to gegevens from CryptoCompare. Traders using the Japanese yen meantime have become 51% of the market, with $30.Three billion switching forearms overheen the past month based on bitcoin’s current price. The U.S. dollar meantime represented a lesser 31% of trades.
The reason for Japan’s surge? The country’s government “has bot enormously accommodating towards cryptocurrencies and bitcoin te particular,” said Fran Strajnar, CEO of Courageous Fresh Coin. Bitcoin’s liquidity is “quickly stir from Chinese yuan to Japanese yen and Korean won, simply because of friendlier legislation, better clarity and better infrastructure and access coming out of Japan and Korea.”
Ter Japan, the government has bot proactive ter regards to addressing bitcoin. The country passed a law ter April recognizing bitcoin spil a legal payment method, with its Financial Services Agency issuing operating licenses to its bitcoin exchanges earlier this year. Trading ter Japan has also bot an attractive choice spil the country’s exchanges operate on a zero-fee trading system.
It’s an interesting shift te the dynamics of bitcoin. Ter the brief history of the cryptocurrency, the price of bitcoin has bot predominated by investors using either the yuan, or the U.S. dollar. Te 2011 for example, the U.S. wasgoed the main player. A flurry of Chinese investors flocked ter thereafter. Te the latter half of 2015 especially, bitcoin trading activity from China began to pick up spil the yuan devalued, pushing investors toward bitcoin spil a way to stir assets outside the country.
Notably, while Korean investors are beginning to make up a larger part of the overall market, they are still a relatively puny section at about 7% of total trades ter the last month.
Now, says Strajnar, it’s “all eyes on Japan and Korea spil they proceed to pave the regulatory way and te turn predominate crypto liquidity.”
But te the near term at least, aside from legal developments related to cryptocurrency ter the U.S., China, Japan, and South Korea, investors also have technological developments to look out for. And there are two major ones around the corner: one planned hard fork on Oct.25, and another expected Nov.Legitimate. A hard fork happens when a segment of cryptocurrency users determine they don’t update the blockchain’s underlying software, which effectively creates one fresh currency. Spil a result of the fork, bitcoin owners would receive an equal amount of the fresh coin.
So why are thesis hard forks potential reason to be buying into bitcoin? Well, says Charles Hayter, co-founder of CryptoCompare, look to the latest August fork of bitcoin and Bitcoin Specie. Bitcoin users disagreed on how to speed up and cheapen cryptocurrency transactions at the time, leading to the split. While some users worried that Bitcoin Metselspecie’s existence would divert users to the fresh coin and undercut bitcoin’s legitimacy, it proved to be an unneeded worry. The price of bitcoin continued to surge upward. And to top it all off, bitcoin owners also received a equal amount of Bitcoin Contant following the fork. That made some users fairly a bit wealthier.
“In bitcoin, one plus one seemed to equal three,” Hayter said.
That’s not to say bitcoin users are assured a good outcome after the hard forks. The concerns around the split fragmenting support for bitcoin still exist today—but having a major global economy signal acceptance of the cryptocurrency certainly helps keep the outlook rosier.
This is part of Fortune’s fresh initiative, The Ledger, a trusted news source at the intersection of tech and finance. For more on The Ledger, click here.