Skip to main content

Chinese Traders Still a Major Influence the Crypto Market, According to Experts

chinese traders

Chinese traders still exert a major influence in the cryptocurrency market, even with all the distinct issues they must now face to operate. This is the opinion of several experts in the field that have weighed in on how the recent prohibitions and ban proposals from China are really affecting how Chinese bagholders that conduct their business in Asian and worldwide exchanges.

Chinese Traders Still Big in the Market

Chinese traders still have a big influence on how crypto markets move even with all of the difficulties they have to operate, according to different experts with knowledge about how Asian markets work. Even sidestepping all of the government regulations, these traders are still managing to do business, taking advantage of gray markets and other services that let them exchange the local currency for crypto.

News of China invoking strict warnings toward cryptocurrency trading and initial coin offerings (ICOs) are not new: China has warned against these activities since 2017 when it outlawed domestic cryptocurrency exchanges. This has now seemingly extended to the field of cryptocurrency mining, with Chinese Vice Premier Liu He stating the country should “crackdown on bitcoin mining and trading behavior,” a statement that created some of the conditions for a big dump in the market last week.

However, according to Matthew Graham, CEO of Sino Global Capital, a local blockchain firm, Chinese traders are still really powerful in the market even now. Graham stated:

The waning influence of Chinese bitcoin traders is an exaggerated story. The fact is that Chinese traders still wield enormous influence.

Bobby Lee, the founder of BTCC, one of the first Chinese cryptocurrency exchanges, also agreed with this opinion. Lee stressed:

I think there is more Chinese traders now. Bitcoin has gained an order of magnitude in price

How Is This Happening?

After initiating harsh regulations toward most cryptocurrency-related services, an offshore gray market appeared to satisfy the demand for these assets. There are now services that allow for Chinese citizens to change their local currency, the yuan, to stablecoins such as USDT. Having USDT, traders now have the possibility of moving their business to offshore exchanges that allow for crypto to crypto trading.

In this way, the renminbi is almost unused in cryptocurrency purchases, at least officially. Bobby Lee agrees with this, stating:

“They no longer have to deal with RMB transfers, it is moving to a USDT payments society and moving into and out of bitcoin. It’s becoming an underground currency.”

Lee makes emphasis in regard to the importance that USDT has for Chinese traders as a means for achieving trading in international exchanges.

What do you think about the influence of Chinese traders in the cryptocurrency market? tell us in the comments section below.



from Bitcoin News https://ift.tt/2R1cOec
Labels:

Comments

Post a Comment

Popular posts from this blog

Deep Web Roundup: Dream Adds Monero and Bitcoin Tumbler “Chip Mixer” Launches

The darknet has been quiet of late, which is the way it’s meant to be. No news means no mega busts, honeypots, or mass market shutdowns. Even when it’s out of the spotlight though, the deep web is quietly making news, whether trialling the latest privacy coins or the newest coin mixers that promise to restore a little of the privacy that’s being stripped away from bitcoin users on a daily basis. Also read: U.S. Agency ICE Conducts Investigations That Exploit Blockchain Activity The Battle for Privacy Heats Up Privacy is all relative, but of late there’s been relatively little privacy to be enjoyed by bitcoin users. Blockchain monitoring software is becoming more sophisticated and more common, with U.S. law enforcement agencies using it to profile and hunt down deep web users. Chip Mixer is a relatively new bitcoin tumbler that’s designed to restore some of that privacy. Available on both the clearnet and darknet, the service uses a variety of techniques to obfuscate blockchain m...
10 comments
Read more

Ombudsman Receives Complaints About Crypto Investments in Spain

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. In the same way, the EU has also warned about these assets recently. Spanish Ombudsman Gives His Take on Crypto Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested. The report states : Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems. The affected users that sought...
Post a Comment
Read more

2021 Bitcoin Price Predictions: Analysts Forecast BTC Values Will Range Between Zero to $600K

As bitcoin has touched new price highs on Thursday nearing the $50k handle, people have been curious as to where the price will go in the future. Meanwhile, despite the gains so far, a number of luminaries, analysts, executives, and proponents from the crypto space believe the leading crypto asset will reach between $60k to six-digits this year. Mike Novogratz Predicts $100K Bitcoin: ‘Other CFOs and CEOs Are Saying, What Should We Be Doing?’ Satoshi Nakamoto’s invention has gained mass appeal in recent times as the leading digital asset bitcoin ( BTC ) has reached its highest value ever in 2021. On Thursday morning (EST), BTC spiked to an all-time high (ATH) at $48,697 per unit. Earlier in the morning at around 2 a.m., bitcoin was exchanging hands for $44,485 and saw an 8.98% increase since then. At the time of publication, at 6:30 p.m. (EST) on February 11, 2021, bitcoin (BTC) is swapping for $47,821 per coin. With BTC so close to the $50k mark, people have been forecasting ...
Post a Comment
Read more