Cryptocurrency investment is on the rise right now, especially due to the recent Bitcoin uptick. BTC’s recent climb attracted Chinese investors, but they’re paying a premium price because they have to pay extra to purchase over the counter.
China previously banned cryptocurrency exchanges from operating within its borders and also banned crypto trading. However, Chinese crypto investors have been using OTC platforms to access the cryptocurrency markets. The downside is that they have to purchase Bitcoin and other cryptocurrencies at a higher price than the officially listed market value. Some of the OTC platforms include Huobi and OKEx, among others.
Chinese Investing Influencing Price?
The recent surge in the price of Bitcoin seems to have revived the cryptocurrency investment appetite of Chinese investors, who have kept off the market for quite some time during the lengthy bear market. The return of Chinese investors to the Bitcoin investment scene has led to speculation that they had something to do with the surge.
A cryptocurrency researcher called Anton Pagi stated that the Bitcoin surge happened after a notable uptick in trading volume on exchanges that have been associated with Chinese traders. Pagi even referred to a data analysis chart provided by CoinLib, a data analysis provider. The chart showed that there was a large Chinese fiat investment into Bitcoin and other digital currencies.
A news outlet called cnLedger revealed that Chinese cryptocurrency investors have recommended a ‘strong buy’ rating on Bitcoin. It also reveals that Chinese investors are using over the counter platforms as their main avenue of purchasing cryptocurrencies. Chinese investors are reportedly so confident about their bullish approach that they are willing to purchase cryptocurrencies at premium prices.
There is a high likelihood that the average bullish outlook and premium Bitcoin purchases are behind the recent surge in Bitcoin prices. Chinese investors have thus been positioning themselves to take advantage of the bullish market.
Featured image: Pixabay