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While the price of bitcoins soared by 27% last week, Chinese traders pay a premium for Tether stablecoins, which offer a simple way to buy cryptocurrency.
Tether offers China the easiest way to buy bitcoins
Cryptocurrency traders in China are starting to wake up. Latest data shows strong demand for stablecoin USD Tether, whose price 00 exceeded its nominal anchor of $ 1, indicating a growing demand from buyers.
News service Twitter cryptocurrency focused on China cnLedger Explain that investors willingly pay a 3% markup on the over-the-counter platforms for the links.
Chinese markets reveal significant purchases. Over-the-counter transactions, the only way to buy bitcoins with fiat in China, are worth a considerable premium (1 USDT = 7 CNY) compared to the official rate of 1 USD = 6.7 CNY.
1 / Chinese markets reveal solid purchases. Over-the-counter transactions, the only way to buy bitcoins with fiat in China, are worth a considerable premium (1 USDT = 7 CNY) compared to the official rate of 1 USD = 6.7 CNY. pic.twitter.com/bd0n0DGFVU
– cnLedger (@cnLedger) April 8, 2019
"… After the ICO PBO / Exchange ban, the most convenient way to buy cryptos in China is to buy stable parts like the USD first by using the OTC and then exchange them for the cryptos that you want in trading, "adds cnLedger.
The Chinese yuan is flowing back into Bitcoin
The latest data from Coinmarketcap shows that the volume of transactions involving the USD represents about 18 billion dollars. The stable coin currently has a market capitalization of about 2.11 billion dollars.
This is up from the annual low of $ 1.6 billion recorded in mid-November, when the USDT fell below its nominal anchor at 98 cents. Notably, it was also when Bitcoin's $ 6,000 support finally gave in, plunging the BTC / USD price to $ 3,000.
Bitcoinist published in March a report on the resurgence of silver in bitcoins and crypto-currencies in yuan (CNY) in general. The same reason for this resurgence is the record earnings of Chinese stocks on fire.
Data from Coinlib indicates that $ 127 million and $ 72.4 million in CNY money were paid over the past 24 hours to Bitcoin and Ethereum, respectively.
This may not be a coincidence as a bitcoin price 00 climbed more than 27% over the past week, exceeding some resistance levels. The latest rally also shows a rising bullish sentiment that could signal a reversal after a 15-month bear market.
Chinese Shrug Off Bitcoin Prohibition
Chinese traders and investors appear to be ignoring the current ban on ICOs and virtual currency trading. The appetite for bitcoin in China appears to be on the rise again as OTC and OTC platforms are gaining popularity.
The rise in the price of bitcoins, meanwhile, seems to activate a positive feedback loop that stimulates interest in the main cryptocurrency in the world.
Bitcoin trades frequented by Chinese traders such as Huobi and OkEx have seen an increase in traffic, according to the latest data from Alexa ranking.
In addition, a survey conducted in December 2018 among nearly 5,000 Chinese people found that two out of five people (40%) wanted to invest in bitcoin, especially among millennials.
In addition, Bitcoin searches by Google's "Baidu" in China soared last week to top the list on April 4, as the BTC's price reached its highest level in 2019 .
Due to the recent surge in prices, #bitcoin at the top of Baidu's most popular emerging keywords. (Baidu is like Google of China) pic.twitter.com/AWtVw9aOzw
– cnLedger (@cnLedger) April 4, 2019
Growing interest was also given after a Chinese court ruled in October 2018 stating that there was no prohibition to own and transfer bitcoin. in China. This decision means that Bitcoin and other cryptocurrencies are legally considered a property in the country particularly known for its Bitcoin mining industry.
Could China spark a further rise in the price of bitcoin? Share your thoughts below!
Images via Shutterstock, Twitter / @ cnLedger
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