For the first time, Bitcoin is trading at a high level on Chinese OTC trading platforms.
China buys Bitcoin at a high price
Dovey Wan said 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). The price of Bitcoin at the time of publication was 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 corona 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.
“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 reinforce 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.
You can see the price of Bitcoin here.
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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