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China Had Virtually No Effect on Bitcoin in Mid-Term, Price Surpasses $4,600

On October 8, the bitcoin price surpassed $4,500 for the first time since September, prior to the imposition of a nationwide ban on cryptocurrency exchanges by the Chinese government. Today, on October 9, the bitcoin price entered the $4,600 region, demonstrating strong resilience towards the exit of the Chinese cryptocurrency exchange market.

Throughout 2017, before the government’s ban on cryptocurrency exchanges, the Chinese bitcoin exchange market accounted for 10 to 13 percent of global bitcoin trades, remaining as the third largest bitcoin exchange market behind the US and Japan. Until the Chinese government’s abrupt announcement to halt cryptocurrency trading in the region, the global cryptocurrency community were highly optimistic in regards to the long-term growth of the Chinese bitcoin market because the government had closely cooperated with local cryptocurrency trading platforms in establishing practical regulations.

The official introduction of the ban on cryptocurrency exchanges by the Chinese government in September triggered a restructuring of the global cryptocurrency exchange market. Bitcoin trading volumes from the Chinese market moved to Japan and South Korea, while some local investors have started to utilize over-the-counter (OTC) markets to trade Bitcoin, including LocalBitcoins.

In a relatively short period of time, Japan evolved into the largest Bitcoin exchange market in the world, overtaking the US by a significant margin. As it demonstrated an exponential increase in demand and growth, the Japanese government also imposed a nationwide licensing program for bitcoin exchanges, authorizing cryptocurrency trading platforms as legitimate financial services companies in the country.

Yuzo Kano, the CEO at Bitflyer, Japan’s largest cryptocurrency exchange with over 800,000 active users, stated:

“Japan has been exploding with demand for both bitcoin trading as well as virtual currency services. The FSA’s approval for bitFlyer to operate as a Registered Virtual Currency Exchange, and the agency’s openness and forward thinking regulation could not come at a better time for the blockchain space,” said Kano.

Due to the overwhelming performance of the Japanese and South Korean Bitcoin exchange market, the Bitcoin price recovered beyond its previous peak prior to the cryptocurrency exchange ban by the Chinese government. More importantly, because of the structuring of the global cryptocurrency exchange market and the flow of trading volumes from China to more stable markets in Japan and South Korea, institutional investors and large-scale conglomerates have begun to demonstrate their optimism towards the cryptocurrency market.

Recently, NSC, the holding company of Nexon, the $10 billion gaming company in Japan, acquired Korbit, a major South Korean cryptocurrency exchange at a $140 million valuation.

As the Japanese and South Korean bitcoin and cryptocurrency markets continue to demonstrate rapid growth in terms of user base and trading volumes, the price of Bitcoin in the mid-term will only continue to rise, and the interim target of $10,000 by prominent analysts including Max Keiser will become more realistic.

Image License: Pedro Szekely, commercial use

COMMENTS(22)

  • BitcoinAllBot
    2 weeks ago BitcoinAllBot

    Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom

  • climb-that-mountain
    2 weeks ago climb-that-mountain

    https://i.imgur.com/8c7vfrA.jpg

  • gary_sadman
    2 weeks ago gary_sadman

    Which part of the chart are you referencing. The middle or the end?

  • climb-that-mountain
    2 weeks ago climb-that-mountain

    There was a double top at the end of 2013 followed by a very long bear market. We just hit another major double top. I’m not saying it won’t continue to go up. It could very well continue up to $10,000 for all I know. But I think at this point it’s driven by greed rather than actual commerce.

  • FormerlyEarlyAdopter
    2 weeks ago FormerlyEarlyAdopter

    Every free market always is driven by greed and fear.

  • climb-that-mountain
    2 weeks ago climb-that-mountain

    Every free market always is driven by greed and fear.

    That’s kind of a blanket statement. There are different levels of greed and fear. Some people are extremely greedy and add little value to the network.

    If no one accepts Bitcoin in exchange for goods and services, then it has no value.

  • LovelyDay
    2 weeks ago LovelyDay

    I remember reading several explanations of how Bitcoin is a largely insignificant factor in capital flight in China.

    And it is not allowed to be used as a currency in their local market.

    So, not surprised it didn’t have that much impact.

  • expiorer
    2 weeks ago expiorer

    Wrong sub!

  • FormerlyEarlyAdopter
    2 weeks ago FormerlyEarlyAdopter

    No, it is just you do not get it about fear and greed.

    Yes, the utility of Bitcoin is important.

  • Lazerguns
    2 weeks ago Lazerguns

    Discussing btc on /r/btc, wrong sub?

  • expiorer
    2 weeks ago expiorer

    btc discussions is on /r/bitcoin.
    /r/btc is more about BCH.
    But lately it seems more about B2X

  • Lazerguns
    2 weeks ago Lazerguns

    Then the name of the sub strikes me as odd. I would expect BCH discussion on /r/bcash or /r/altcoin.

  • haluter
    2 weeks ago haluter

    It’s a shame we can’t rotate /r/btc by a few degrees.

  • Awston
    2 weeks ago Awston

    We discuss Bitcoin as a whole here, not just Bitcoin Cash.

  • DesignerAccount
    2 weeks ago DesignerAccount

    It is odd indeed… do a quick recon around and you’ll see the most topics are about Bcash and/or B2X.

  • Lazerguns
    2 weeks ago Lazerguns

    Ikr, it’s fine to occasionally discuss alts IMHO, but I’m just interested in bitcoin (and I have doubts about the moderation of /r/bitcoin).
    They should implement post flairs so you could filter.

  • gary_sadman
    2 weeks ago gary_sadman

    Oh you mean when MtGox the only major exchange collapsed, eco system is very different now.

  • ssiinneerrss
    2 weeks ago ssiinneerrss

    How about the double top at $3k that broke out?

  • saintkamus
    2 weeks ago saintkamus

    I think you’re in the wrong sub, go to /r/bch

  • sneakpeekbot
    2 weeks ago sneakpeekbot

    Here’s a sneak peek of /r/bch using the top posts of the year!

    #1: Survey Results : 36 responses, ‘What are you going to do with your free BCH?’ | 5 comments
    #2: If BCH works out then will r/btc move here?
    #3: What happens to the BCH that wasn’t issued (eg coinbase)

    I’mabot,beepboop|Downvotetoremove|Contactme |Info |Opt-out

  • bobjonesxvii
    2 weeks ago bobjonesxvii

    No, you’re oversimplifying. Markets are driven by demand

  • bobjonesxvii
    2 weeks ago bobjonesxvii

    Relevant. They tried their best direct-targeted bullshit and it was pointless. So now Chinese ‘authorities’ will get even more underhanded.

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