Cryptocurrency trading surged on Japan’s Bitflyer on Monday as the Nikkei fell, with the Tokyo-based exchange posting a bigger jump in volume than global platforms such as Binance and Coinbase during a sharp sell-off in Asian stocks.
According to data from CoinGecko, Bitflyer’s 24-hour trading volume has increased by 200% compared to 112% on Coinbase and 75% on Binance. Activity on Korean exchanges was more subdued, with Upbit volumes increasing by 27.1% and Bithumb by 49.0%.
The surge in Japanese cryptocurrency trading coincided with a sharp sell-off in regional stocks, as Japan’s Nikkei slid alongside declines in Korea and Taiwan amid an unprecedented rise in oil prices. Asian nations, including Japan, rely heavily on oil flowing through the Strait of Hormuz, which has seen disruptions due to the ongoing war with Iran.
Japanese traders likely shifted toward BTC more aggressively during the stock market stress, while Korean flows were weaker.
Price action in regional crypto markets reflected a similar pattern. Data from TradingView shows that Bitcoin rose about 2.05% against the Japanese yen during Asian trading hours, compared to gains of about 1.86% against the US dollar and about 1.64% against the Korean won.
The improved performance in yen terms partly reflects currency movements, as the yen weakened against the dollar, but also aligns with increased activity on Japanese stock markets during the sell-off in regional stocks.
This surge in cryptocurrency trading came as Asian stock markets came under severe pressure.
Damage was not evenly distributed across the region during opening day Monday. South Korea’s Kospi led the declines, falling about 8% and triggering a circuit breaker, while Japan’s Nikkei 225 fell about 6.5%. Taiwan’s Taiex also fell sharply, losing around 4.9%.
These moves are among the steepest post-pandemic declines for all three markets, although still smaller than the double-digit declines seen during the global financial crisis and the March 2020 pandemic sell-off.
The South Korean market tends to react more violently to oil shocks due to the country’s heavy dependence on imported energy.
The country consumes approximately 2.5 million barrels of crude oil per day and imports almost all of it, with around 70% coming from the Middle East. The International Energy Agency has described South Korea as “an ‘energy island’ without interconnections” and one of the most energy-intensive economies in the OECD.
Taiwan faces similar constraints, relying on imported energy for about 97% of its supply and almost all of its crude oil consumption.
However, unlike South Korea, Taiwan has diversified its crude oil supply in recent years. Middle Eastern oil now accounts for about 35% of Taiwan’s imports, down from more than 70% at the beginning of the last decade, and the United States is emerging as a major supplier.
The Japanese market also fell sharply, but showed a little more resilience. While the country remains heavily reliant on imported energy, the Nikkei includes a broader mix of industrial, financial and consumer companies, which can moderate volatility compared to the more concentrated technology indices of South Korea and Taiwan.
That relative resilience may also help explain why cryptocurrency trading activity surged on Japanese exchanges like Bitflyer even as stocks fell, with traders repositioning themselves into digital assets as traditional markets across the region sold off.
All eyes now turn to Tuesday’s open in Tokyo, where traders will watch whether the surge in cryptocurrency volumes on Bitflyer and other Japanese exchanges holds or fades as stock markets try to stabilize.
