It would appear bitcoin’s popularity is not waning in China by any means. After the PBOC introduced a string of new requirements, exchange volume across all exchanges has tapered off quite a bit. Looking at the LocalBitcoins charts, it is evident China is not done with bitcoin just yet. A huge trading volume spike occurred over the past week, indicating the demand is still growing.
LocalBitcoins China Volume Soars
Over the past few weeks, the LocalBitcoins volume in China had started to shrink as well. Considering how the PBOC sat down with all major exchange platforms, as it was only a matter of time until traders started looking elsewhere. For some time, it appeared Chinese traders would switch their attention to Japan, which has seen quite an impressive bitcoin volume as of late.
According to the Coin Dance charts, it would appear a different shift is taking place. Chinese traders are flocking to the one bitcoin trading platform that eludes the grasp of the PBOC for now. LocalBitcoins is well underway to become the primary source of bitcoin trading volume in China, thanks to its record-setting volume last week.
Compared to the week before, the volume on LocalBitcoins China has more than quadrupled. It is anybody’s guess who is buying up so many bitcoins right now, although it is safe to assume some of the exchange traders are keeping a close eye on this market. Peer-to-peer bitcoin trading is being more than viable alternative to using exchanges, albeit it may be a bit more difficult to find bulk sellers. Regardless of where the volume comes from, over 6.5m Yuan worth of BTC changed hands through LocalBitcoins last week.
It is evident the Chinese demand for bitcoin is all but satisfied right now. With local exchanges reintroducing trading fees and delaying bitcoin withdrawals, a lot of traders are forced to look for other solutions. Considering how there are only three bitcoin ATMs in China right now, the options are rather limited for most traders. Using LocalBitcoins is somewhat of a last resort, even though it can generate enough volume to keep the Chinese BTC market alive and kicking.
It is not the first time the Chinese LocalBitcoins volume spikes all of a sudden, though. Similar trends occurred in June of 2016 when two new all-time highs were set in quick succession. Ever since that time, the volume had tapered off quite a bit, though, even though it never dried up entirely. The bigger question is whether or not this volume will keep growing or is just a one-off during these uncertain times for bitcoin exchanges in the country.
Speaking of the Chinese bitcoin exchanges, it appears their trading volume is shrinking rapidly. As we mentioned in yesterday’s article, Japan has become the largest bitcoin trading nation right now, generating more volume than China. Some people are speculating trading bots are at work to prop up the volume, albeit none of those claims can be properly verified right now. Interesting times are ahead, that much is certain.
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