Yuan Trades Making More Than 70% of Bitcoin Volume
While China was always among the top countries in Bitcoin transaction, the Chinese market reached a new high by taking lead with more than 70% 0f the Bitcoin shares.
It has been found that a huge portion of Bitcoin transactions performed over the period of past 30 days was from Yuan trades.
A tweet from BTC China, a China-based exchange, highlighted that a sum of 71% of Bitcoin trades carried out last month attributed to Yuan users. This basically means that the Chinese market occupies the largest part of the Bitcoin market.
BTC China also cited data from bitcointy which clearly proves their statement by showing that majority of transactions took place in Yuan.
According to the statistics, the US dollar was in the second position while transactions in euro were a distant third in terms of volume.
In order to analyse the issue in details, data and charts for the past bitcoin trading volume was compared with the most recent result.
The startling results were matched with that of exactly one year ago to describe what impact China has on the market.
About exactly one year ago, the US dollar was the dominant currency. This began to change towards the end of 2013 as the volume of CNY transactions increased suddenly.
The ratio of CNY transaction to USD transaction was 1 to 3. For every 3 US dollar trades, approximately one Chinese Yuan trade was carried out.
The scenario was very different, as today CNY accounts for more than two-third of all deals.
It is important to remember that trading accounts for USD and HKD was launched by BTC China in July 2013.
Another potential explanation for this changed statistics could be because most of China’s exchanges are now accepted for 0% fee models.
This new policy could be a significant reason behind the suspiciously increased Yuan trade. China turned the table in Bitcoin business within a year only.
Impact on Bitcoin
China is home to the biggest Bitcoin exchanges in a global scale. They are also equipped with several industrial-scale mining operations.
Because of these and many other reasons, the nation’s effect on the prices of Bitcoin and the overall network should never be underestimated.
The stir in China’s Bitcoin market clearly has a visible effect on the full industry. It is leading to changed values and demands.
Towards the beginning of this year, the Bitcoin market was affected by a trail of uncertainty.
Some rumours swamped minds of users and non-users. One of the major buzzes was that the People’s Bank of China would soon ban the currency.
This news disrupted operations and the prices fumbled a little in March. Initially, international traders reacted to the news negatively but the fear subsided by April.
The People’s Bank of China did not take any formal measures against Bitcoin businesses, this led people to assume that the authorities had plans to separate their Bitcoin businesses from its financial industry.
This uncertainty has a significant effect on the domestic exchanges and this led a few smaller start-ups to close down.
On an ending note, it is clear that the Chinese market has a great influence on the Bitcoin market. Today, CNY is leading in the Bitcoin market.