Trade Tensions with the US Are Fueling Demand for Crypto in China
A weaker yuan and continuous trade issues with the US are leading to higher demand
for digital currency in China. Investors from China are willing to bet
on cryptocurrencies despite strong government regulations against
digital assets.What to market participants say?
According to brokers, researchers and exchanges, Chinese investors are flocking to popular crypto trading venues. Platforms popular with the Chinese are marking increased activity with most of the traffic going to over-the-counter (OTC) brokers. However, getting accurate trading volumes from China is a difficult task.
Pinning down the geographical location of users who are sending or receiving digital coins in their wallets is impossible. Moreover, the Chinese government banned cryptocurrency platforms in 2017 and has been consistently cracking down on other companies in this sector along with miners. As a result, data on the Chinese crypto industry is already too little and unreliable.
Why are the Chinese investors headed?
The impact of the US-China trade war, which could bring terrible results for the Chinese economy, is leading several larger Chinese investors to OKEx, a popular crypto trading platform. The weakening yuan is also making these investors move away to digital coins. Last week, China allowed yuan to break beyond the 7-per-dollar level for the first time in over a decade. Following this, Washington called China, a currency manipulator which upset the markets. President Trump has since announced that he would be delaying the new series of tariffs on Chinese goods till the holidays are over.However, the Chinese economy is not on the right path. This week’s data shows that the Chinese industrial output has been the slowest in 17 years. However, if there is no accurate data on China’s Bitcoin investors, how can there be any consensus on what people in the world’s second-largest economy want?........
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Trade Tensions with the US Are Fueling Demand for Crypto in China
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