Jul 1, 2022

The West is buying up the "Chinese" cryptocurrency

This time, the Chinese government is putting pressure on miners and investors through commercial banks and financial institutions:clearing, settlements and insurance of cryptocurrencies were banned. Despite the overseas registration, the largest crypto exchanges in China reduced the list of services, and the crypto market lost $ 1 trillion in capitalization in two weeks.
The West is buying up the "Chinese" cryptocurrency

Image Source: StormGain Cryptocurrency Exchange

The leading position in the Chinese market isHuobi with $ 18 billion in daily turnover, followed by OKEx. Due to the problems that have arisen, Huobi has stopped providing leverage to new users "from several countries and regions" (read - China), and OKEx is closing trading pairs with the yuan from today. Huobi, which has the eighth largest mining pool in the world, is closing access to mainland Chinese residents.
The West is buying up the "Chinese" cryptocurrency

Image source: messari.io

The negative from China led to the sale of cryptocurrenciesand the subsequent exchange of stablecoins for the yuan, which caused a 12% volatility in the USDT / CNY pair. While Chinese traders tried to get out of cryptocurrencies and get yuan while it was still possible, Western investors bought up the cheaper coins. According to Glassnode, whales (from 10 thousand to 100 thousand BTC) bought back 123,588 BTC at the fall. Most of the purchases came from the United States, as Bitcoin traded at a premium of $ 3,000 on Coinbase during the fall, compared to other crypto exchanges.
The West is buying up the "Chinese" cryptocurrency

Image source: glassnode.com

China accounts for about 50% of the world'shash rate and 60% of the volume with perpetual futures contracts. The next persecution of miners and investors can lead to global changes in the structure of world crypto-finance. In early November 2020, US Director of National Intelligence John Lee Ratcliffe wrote to SEC Chairman Jay Clayton recommending that US companies be allowed to compete with China on digital currencies. Perhaps, in the near future, the United States will become the leaders in terms of hashrate and volume of crypto trading.

Analytical group StormGain