A resurgence in Chinese Bitcoin trading volume following huge growth in the Japanese and South Korean markets is forecasting a future where the US markets follow Asian price moves.
China’s Bitcoin Markets Had Come To Resemble A Sleeping Giant In Recent Weeks
Chinese bitcoin exchange rates has taken a 3% price lead following announcements that two of the three ‘big exchanges’ in China will again be accepting deposits and withdrawals in fiat currencies.
China’s bitcoin markets had come to resemble a sleeping giant in recent weeks, following a crackdown on high leveraged margin trading by the PBOC earlier this year. The fall-out saw restriction being placed on the margin thresholds available to Chinese traders, and resulted in a 90% reduction in trading volume across the major Chinese exchanges.
The announcement that two of the exchanges have returned to operations as usual regarding deposits and withdrawals has been the catalyst for Bitcoin’s sharp rise in price over recent days, culminating in the establishment of a new all-time high of over 20,000 CNY – evidencing that China may be able to again rival Japan in the near future for market dominance, despite trading volume having not recovered since the crackdown.
The resurgence of Chinese bitcoin trading comes after a long period of dramatically rising growth of Bitcoin trading volume from major economic powers within the Asian region.
Dramatic Growth In Bitcoin User Adoption Throughout The Asian Region Is Forecasting An Increasingly Reduced Influence And Market Share Enjoyed By US Markets
Japan rapidly rose to a position of dominance within Bitcoin starting in 2016, which has been assisted by the introduction of an extremely Bitcoin-friendly regulatory framework across the entire nation.
In South Korea bitcoin is currently trading at prices more than $1000 higher than current US prices, owing to the introduction of permissive regulations, significant increases in user adoption, and the inaccessibility for foreign citizens to access South Korean bank accounts.
India also saw a dramatic surge in bitcoin usage towards the end of 2016, following an intensification of the war on cash in an attempt to centralize and restrict the financial freedoms of the nation’s most vulnerable citizens.
This dramatic growth in bitcoin user adoption throughout the Asian regions is forecasting an increasingly reduced influence and market share enjoyed by US markets, which briefly overtook China’s trading volume following the fallout from the PBOC interventions for the first time since 2013.
Despite recent baby-steps toward more inclusive and fostering regulatory frameworks pertaining to Bitcoin on the part of Western governments, it appears that the Asian markets will increasingly dominate the cryptocurrency markets.
Do you feel that the Bitcoin markets are moving into an era of Asian dominance over Western markets? Tell us in the comments below!
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