While official data is not yet available, BitPinas has looked into LocalBitcoins data to check the bitcoin transaction activity in the Philippines. The results? Despite the bear market, residents in the Philippines have traded more bitcoins for the period of July – August 2018.
This article is first published on September 18, 2018.
Data collected by BitPinas from Coin Dance shows a surge of bitcoin trading volume within LocalBitcoins on August 2018.
Specifically, it was during the week of August 11, 2018 when volume peaked at Php 35 Million. The week before that was the 2nd highest at Php 31 Million.
All in all, the total volume of bitcoin traded on LocalBitcoins in August 2018 amounts to Php 107,405,230. This represents a 152% increase from July’s Php 42,551,870.
The previous volume recorded this year was in March 2018 when trading volume totaled Php 63,232,289. There was a big dip in April 2018 but the volume has increased since then.
In a previous article, BitPinas has noted that while Q2 2018 records showed decreased volume, the month-to-month data (from March 2018 – June 2018) has steadily increased.
Incomplete Q3 Records Already Shows Increased Volume
Data for the period of July 2018 – September 2018 is not yet complete. However, incomplete data from July 1 – September 15, 2018 shows that trading volume for Q3 2018 has already exceeded Q1 and Q2 2018.
Q3 2018 is also poised to be the quarter with the highest volume in the last 5 quarters. This, despite of the bear market where most of the cryptocurrencies are experiencing dips and lows in their values.
Explanation of the Spike
But why was there a sudden spike in trading activity? For Mr. Mac Ocampo, Paxful Marketing Head for Asia and the Pacific, the spike can be related to Bitcoin reaching the $8,000 mark last July.
“I think people were chasing the $8k+ mark during the mini bull rally in July then had a quick slump around August.”
Additionally, August is generally regarded by many as a “ghost month”. Particularly in Asia, “many Chinese don’t do major business deals, buy properties, or assets during this period,” Mr. Ocampo said further.
Of course to some, the slump is an opportunity to get more cryptocurrency, hence, it could be another reason for the spike in trading this August 2018.
The Bangko Sentral ng Pilipinas’ official records revealed that during Q1 2018, $35 million worth of transactions were facilitated by SCI Ventures and Coins.ph, which at the time were the only holders of virtual currency exchange license in the Philippines.
Today, there are 4 more companies with the same licenses and it is expected that official data will reveal a more rounded report because of more ways to obtain cryptocurrency legally in the Philippines.