January 29, 2023

Hong Kong LocalBitcoins Trade Volume Falls Despite Tense Political Situation

Hong Kong LocalBitcoins Trade Volume Falls Despite Tense Political Situation

Last week, it was reported that Hong Kong residents are buying huge amounts of BTC at overpriced prices. Such actions, first of all, indicate a potential interest in cryptocurrencies as a way of hedging risks in the context of the political and economic crisis, which affects not only this region, but the whole of China.

Over the past week at LocalBitcoins has beensold over 12 million Hong Kong dollars and 173 BTC. According to most analysts, the reason for this may be current politics and a lack of confidence in the country's financial system.

It seems to me that buying a BTC could very well bea sign of the failure of local Protestants in Hong Kong to abandon the local economy, run by governments and financial institutions, said eToro senior analyst Mati Greenspan.

Other analysts and traders adhere to the same point of view, especially since earlier there were already attempts to “break” the banking system.

However, according to the creator of Usefultulips.org Matt Alborg is not the reason. He notes that the surge could have occurred because one trader took advantage of the bearish trend in the market to buy BTC. And the actions of this mysterious trader have nothing to do with the political crisis in the country.

As you can see, a week later the indicator of trading volumeat LocalBitcoins decreased by more than 4 times. The fixed rate was only 2.9 million Hong Kong dollars. Therefore, the Alborg hypothesis may have a right to exist.

OTC markets are difficult to analyze becausewhich, unlike traditional cryptocurrencies, transactions are not tracked, and transactions are not disclosed. Therefore, many say that over-the-counter trading does not affect the prices that traders see on traditional exchanges.