June 18, 2024

Hong Kong LocalBitcoins Trade Volume Falls Despite Tense Political Situation

Hong Kong LocalBitcoins Trade Volume Falls Despite Tense Political Situation

Last week, information appeared that Hong Kong residents were buying huge volumes of BTC at inflated prices.prices.Such actions, first of all, indicate potential interest in cryptocurrencies as a way of hedging risks in the context of the political and economic crisis that affects not only this region, but the whole of China.

Over the past week, LocalBitcoins has hadover HK$12 million and 173 BTC sold. According to most analysts, the reason for this may be current policies and a lack of confidence in the country's financial system.

It seems to me that buying BTC may well bea sign of local Protestants in Hong Kong rejecting 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 Ahlborg that's not the reason. He notes that the surge could have occurred due to the fact that one trader took advantage of the bearish trend in the market to purchase BTC. And the actions of this mysterious trader have nothing to do with the political crisis in the country.

As you can see, after a week the trading volume indicatoron LocalBitcoins decreased by more than 4 times. The fixed figure was only HK$2.9 million. Therefore, Ahlborg's 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.