Bitcoin (BTC) continues its upward trajectory, reaching a new all-time high of $1,481.7 (Bitstamp price index) on May 2, 2017.
Key Milestones:
- May 1, 2017: BTC surpassed $1,400, sustaining growth the following day.
- April 30 (UTC): Bitcoin Price Index (BPI) recorded a peak of $1,350**, climbing to **$1,400 within 24 hours.
Market Insight: CoinMarketCap reported nearly $700 million in BTC trading volume on May 2, predominantly driven by Japanese markets, where JPY-denominated trades accounted for over 50% of global activity.
Regulatory Shifts in Japan
Japan’s tax policy previously imposed an 8% consumption tax on BTC buyers, but legislation passed in late 2016 eliminated this levy, effective July 2017.
Growing Institutional Interest
- Nikkei revealed 18 companies plan to apply for digital currency exchange licenses.
- 10+ new entrants in Japan’s BTC ecosystem aim to capitalize on rising demand following Bitcoin’s recognition as a legal payment method in April 2017.
Charles Hayter, founder of CryptoCompare, told Reuters:
"Japan’s swift regulatory embrace—legitimizing BTC payments and establishing oversight—has fueled adoption."
With progressive regulations, Japan positions itself as a global leader in digital currency-friendly economies. Over 260,000 retail outlets are expected to accept BTC by mid-2017.
👉 Why Japan’s Bitcoin Boom Matters
ETF Speculation Boost
The Winklevoss twins highlighted another catalyst: the SEC’s announcement to review its March decision rejecting a Bitcoin ETF, further propelling prices.
By May 3, BTC soared to $1,481, marking a 50%+ YTD increase.
FAQ
1. Why did Bitcoin surge in May 2017?
- Key drivers: Japanese regulatory clarity, increased retail adoption, and ETF reconsideration by the SEC.
2. How did Japan’s tax change impact BTC?
- The removal of the 8% consumption tax reduced transaction costs, boosting trading volume.
3. What’s next for Bitcoin’s price?
- Market optimism suggests continued growth, especially with expanding institutional participation.