It is evident for everyone to see the focus in Bitcoin is on the upcoming halving as we speak. But despite this monumental event, other things are going on in the Bitcoin space as well. Trading of cryptocurrency, for example, continues as it always has. A very busy Chinese market is inching closer towards 1 million BTC in 24-hour trading volume once again.
What Will The Chinese Market Do?
Keeping in mind how 90% of daily Bitcoin trading volume occurs in the CNY market, people are keeping a close eye on how the trading progresses over there. Whenever the Chinese Bitcoin market makes a move, the rest of the world will follow in quick succession. Interestingly enough, the Bitcoin price has been on the decline as the halving inches closer.
Despite that somewhat disappointing sign, the 24-hour trading volume in the CNY market is close to 1 million Bitcoin. Similarly to most other days of the year, the CNY market is responsible for over 90% of all Bitcoin trading. Then again, most of the money is being made and lost in the OTC markets, which are not represented in most statistics.
Despite all of that, the markets are holding their own right now. A block reward halving can send the price in either direction relatively quickly. While most people anticipate an eventual Bitcoin price increase, the short-term effects will remain relatively limited. That may also explain the slight trading dip in the BTC/CNY market over the past few days.
Albeit the 24-hour volume hovers around the 1 million BTC market, the daily volume per day is on the decline in China. Everything was fine on July 7th, with nearly 1.5m Bitcoins being traded. However, that number was almost cut in half the day after, as ‘only” 856,702 BTC changed hands that day.
So far, today is looking like a repeat of yesterday. Even though we are only hours away for the 2016 Bitcoin halving, traders remain very cautious for the time being. It is not unlikely some traders will get nervous and make a decision they may regret in the long run. For now, it is anybody’s game, and the following days will be quite exciting, to say the least.
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