The Japanese crypto exchange FXcoin Ltd. is now planning to offer trading services as Bitcoin makes a recovery after coronavirus-fueled turmoil.
In March, Bitcoin recorded one of its biggest drops of about 50% by falling to $3,850. Since then, we have recovered over 85%, currently trading just under $7,200.
As we reported, in the past month, despite the violent sell-off, retail investors flooded in to buy the dips. Bitcoin whales are also surging to 2017 levels while long-term investors are increasing their positions and accumulating more BTC.
A previous Deutsche Bank AG veteran is ready to begin offering BTC transactions on their platform next month, with these signs of market restoration, and over 2 years after it was founded, reported Bloomberg. FXcoin just began approving requests from potential clients that want to open new accounts.
Planning for the Future
FXcoin, funded by SBI Holdings Inc. is one of the 23 crypto exchange operators that are enrolled with the Financial Services Agency (FSA) after Japanese authorities began securing industry failures from several hacking incidents in the country.
Currently, the company has about 36 staff members and hopes to add more employees to around fifty by the end of 2020 and hopes to begin gaining in profits by the end of 2021.
The company is planning to eventually build a swaps market to allow investors to hedge against the high volatility persistent in the market.
Bullish on Digital Currency Prices
During the recent sell-off, however, Bitcoin was not the only one affected by the coronavirus pandemic, the world markets were hit and now a recession seems very likely.
However, central banks have injected liquidity into the market and announced trillions of dollars worth of stimulus measures in an effort to battle the economic backlash by firing up their money printers. According to FXcoin’s CEO Tomoo Onishi,
“stimulus measures to fight the economic fallout from the pandemic will flood global markets with cash, causing some money to flow into digital currencies.”
Despite Bitcoin plunging in line with conventional assets and putting a question mark on its safe haven status, Onishi is “bull on virtual currency prices.” He also said “There is no asset that’s absolutely safe,” and “there is evidence that digital currencies don’t move in tandem with conventional assets over the long term, making them worth including in a portfolio to diversify risks. “I’m a bull on virtual currency prices,” he said.