Chinese Investors Return to Bitcoin with Yuan Being Second Entry Fiat Currency
The cryptocurrency market has seen a surge of capital in Chinese yuan (CNY) inflow, making the currency in the top entry fiat currencies close behind U.S. dollar in the past 24 hours.
Data from Coinlib shows that $161.7 million worth of Chinese yuan pour into the bitcoin market, followed by $74 million into Ethereum and nearly $20 million into Stellar. A total of $255 million worth of CNY-crypto pairs in the past 24 hours has make CNY the second entry fiat currency into crypto economy after the U.S. dollar.
In addition to the statistics from Coinlib, peer-to-peer exchange volumes draw the same conclusion. LocalBitcoins volume indicates that 25.4 million ($3.7 million) CNY was in crypto trade for the week of 2019-03-16, an over 2 million increase from the previous week.
Over the last 7 days, the value of bitcoin has seen steady growth, climbing from $3,870 (on Mar.12) to $4,038 (at the time of writing) on coinmarketcap; some other major cryptos also see some solid gains. The latest rally in the crypto market was suggested by some avid bitcoin traders to be driven by the considerable CNY inflows from the profits of the rallying Chinese stock market in recent weeks. Some even joked that the brewing property tax in the country is compelling real estate speculators to cash out their properties for cryptos.
On the other hand, major crypto marketplaces that Chinese investors can flock to for cryptos, including popular platforms like Binance, ZB.com, OKEx and Huobi, have ranked top by trade volume, though located offshore after the country’s ban on crypto trading and ICOs issued in Sep. 2017.
In related developments, China-based mining giant Canaan has reportedly sealed hundreds of millions of dollars in new funding; Bitmain IPO may have some progress and its controversial financial figures of Q3 2018 may soon come out by Mar.26. If the mining giant doesn’t want to have its application lapse, it must disclose financial numbers up to Sep. 30 based on the HKEX’s current listing requirements (the financial period reported by any new applicant must not have ended more than six months from the date of the listing document).
Apart from that, the upcoming wet season in Sichuan that concentrates the majority of bitcoin miners in China poses a great bullish signal.
Bitcoin price has broken up the $4,000 mark during the last weekend. Its 24-hour volume has doubled ($4.64bln to $9.25bln) since the start of the year. Will the Chinese yuan inflow leads the continual rise of bitcoin, the same as Chinese stock rally benefiting the global portfolio? Leave your comment below.