China is slowly recovering from the corona virus pandemic – and now it seems that the country is also leading the purchase of Bitcoin during this period of decline in the cryptocurrency market.
China buys Bitcoin at a high price
According to Dovey Wan – Founding Partner of Primitive Ventures, China is buying Bitcoin at a price higher than the average. This may indicate a trend in the larger market is changing.
On free-trade platforms like Huobi OTC, OKEx OTC and LocalBitcoins, BTC is trading at significantly higher prices than other exchanges. For example, the average price on Huobi OTC is around ¥ 3954141 ($ 5,638), while the BTC price at the time of writing is about $ 5100.
First time occve seen such big Chinese OTC premium during a technically Bitcoin bear market
This can be part of the new paradigm pic.twitter.com/5T85WL1WCJ
– Dovey 以德服人 Wan 🪐🦖 (@DoveyWan) March 16, 2020
Could this be part of a ‘new model’? As China recovers from the Covid-19 virus pandemic and the rest of the world is struggling, we can see a big slide between the cryptocurrency markets. China is currently leading and expressing high demand for BTC.
Some people are speculating that this is evidence that Bitcoin has bottomed out. However, Bitcoin has still fallen nearly 4% in the past 24 hours and appears to be a falling knife.
That tells me #Bitcoin has hit it's floor. If there are buy orders with a premium on OTC, then the retail markets might start seeing the same price action on the exchanges.
– Gaƀe Higgins (@Crypto_Edge) March 16, 2020
“It shows that Bitcoin has bottomed out. If there are buy orders with spreads on the OTC, then the retail markets must begin to witness price action on exchanges. ”
While this may not be the bottom of the cryptocurrency market, this development could strengthen Asia's dominance of the blockchain industry.
As of now, China is in the strongest position to recover after addressing the corona virus crisis in this country. We will have to see if these high prices hold up and whether they are a new trend. Let us not forget that China has committed to blockchain technology as part of an 'important digital infrastructure'. Therefore, there is a desire for domestic cryptocurrencies if the ruling party authorizes such activities.
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According to Tapchibitcoin / BeInCrypto