An increasing Bitcoin price is always a result of more frequent trading in China. Given the current financial woes plaguing the country, it is hardly a surprise to see investors diversifying their portfolio these right now. The 24-hour Bitcoin trading volume against the CNY is quite impressive.
Fierce Competition Across Chinese Bitcoin Exchanges
It is hardly a surprise to see a growing amount of CNY-based Bitcoin trading volume originating from China. Not only does this country have the largest population on the planet, but there are also forces at work which are slowly driving consumers and investor away from traditional finance. With very strict capital control in China, it is becoming a lot harder for people to move funds out the financial system.
Bitcoin presents a more than welcome alternative to a lot of individuals. The cryptocurrency is not only an investment vehicle, but it also a way to conduct business on a global scale without much friction and very low fees. Albeit not everyone sees Bitcoin as something other than an investment, consumers and investors are starting to appreciate the true value of cryptocurrency.
Chinese Bitcoin exchanges are selling a lot of daily trading right now, and OKCoin is the one leading the charge over the past 24 hours. With over 813,000 Bitcoin and more than 3 billion CNY changing hands in the past 24 hours, there seems to be a growing demand for the cryptocurrency. This explains why the Bitcoin price has been rising steadily for several days in a row.
But other exchanges are dealing with CNY trading as well, all of whom would like nothing more than to become a top contender. Huobi seems to be well on its way, with 588,775 BTC and over 2.2 billion CNY in 24-hour trading volume. Other platforms are still a long way away, though, as LakeBTC, Yunbi, BTC38, and BTER are well behind the rest.
It is interesting to note there is an increased demand for Bitcoin through the Chinese version of LocalBitcoins as well. The price paid per Bitcoin on this platform is nearly 120 Yuan higher than across the exchanges. This may be an indication consumers and investors would rather not go through a tedious verification process, and want to obtain Bitcoin as soon as possible.
Source: CryptoCompare
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