The daily trading volume of the Chinese bitcoin exchange market has nearly doubled that of the US bitcoin exchange market, surging above 45,000 bitcoins. For a brief period of time, the Chinese exchange market overtook the US in terms of market share to become the largest bitcoin market in the world, for the first time since November of 2016.
One important indicator of the Chinese bitcoin market’s recovery which investors must acknowledge is the rapidly growing trading volume of the Chinese exchange and over-the-counter markets. Under normal circumstances, a massive sell-off should have occurred when reports from Caixin and the Wall Street Journal were released about the plans of the People’s Bank of China, the central bank of the country, to suspend or ban bitcoin trading platforms.
When the initial report of Caixin was released, the Chinese bitcoin market crashed, bringing the price of bitcoin down to the $4,000 region. Many analysts expected the release of WSJ’s report to slow down the momentum of bitcoin even further. But, in contrary, bitcoin has recovered to over $4,200 today, with the Chinese bitcoin exchange market demonstrating high trading volumes and US investors moving bitcoin price upwards.
More to that, within a single day, bitcoin price in the Chinese exchange market rose by 9.3 percent, while other markets such as the US, Japan and South Korea remained stagnant. Momentum is rebuilding in China, despite the ongoing bitcoin exchange ban talks and the PBoC’s supposed introduction of plans to suspend bitcoin exchanges indefinitely.