For the first time, Bitcoin on China’s OTC trading platform is traded, at a premium.
China is recovering slowly but surely from Coronavirus – and now it seems that the country is leading the purchase of Bitcoin in this bearish period for the cryptocurrency market.
China buys Bitcoin at a premium price
Dovey Wan (@DoveyWan) reports that China buys Bitcoin at above-average prices. Rare sightings are new developments – which may indicate the fact that trends in the broader market are changing.
On OTC Trading platforms such as Huobi OTC, OKEx OTC and local bitcoin are traded BTC at a much higher price than on other exchanges. So the average price is at Huobi OTC in the last 24 hours around ¥ 39541 ($ 5,638). The price of Bitcoin at the time of publication was around 4,725 dollars.
Can this be part of the “new paradigm”? While China is recovering from an epidemic of Coronavirus and the rest of the world is fighting, we can observe large variations between markets for cryptocurrencies. China, for now, is a leader and places high demands on the number 1 cryptocurrency.
Some speculate that this is proof that Bitcoin has reached its bottom. However, Bitcoin has fallen -13% in a day and seems to be a falling knife.
Although this might not be the low point for the crypto market, it could strengthen this development is Asia’s dominance in the Blockchain industry.
Further market volatility in perspective
Because US-futures account for -5% before the opening bell, it seems to be the same volatile week as the last. In the past week, the market was only in 16 days from all-time highs in a downward trend to change positions – new records.
A -50% decline on Thursday for most crypto markets has the potential to scare many investors in the long run, with Bitcoin slipping today, further down.
Although some claim that this is not the time for purchase, it could push the coming week further down.
At present, China is in the best position to recover from the Coronavirus crisis in their own country again. We will see if the prices of Premiums are from stocks and whether they show new trends.
Don’t forget that China has promised to block technology as part of its “critical digital infrastructure”. So there is a voracious appetite for cryptocurrency in the country if the government does not allow these activities.