- If we take a look over the composite index of Shanghai, it surged over 21% on September 30, as compared to that on September 23.
- The national holiday was shorter but yet it showed an outstanding step towards cryptocurrency.
Crypto trading has been banned by China since 2021, but many nationals still use foreign accounts as well as exchanges to buy and sell digital assets. This helps them to get rid of any kind of capital control and they can also move assets from the shore.
Dessislava Aubert, a senior research analyst at Kaiko states that Tether, the seventh largest holder of BTC is trading at a discounted price as compared to the dollar from September’s end. The Central Bank of China introduced some regulations to put a hold on the sinking economy that somehow clashed with the discount which helped in the skyrocketing of stock prices.
Tether is a stablecoin, and the cryptocurrencies whose value is fixed as 1-to-1 to assets similar to the dollar are referred to as stablecoin. They help to avoid price swings like many other tokens.
Perspectives over panic buying
The CEO of Hashkey, a Chinese crypto exchange, Livio Weng stated that “There is a state of panic buying of the stocks and traders are in hurry to exchange it into real money.” The picture of the exact amount of USDT selling pressure by Chinese investors remained unclear on exchanges but it is not the same over many other platforms.
The yuan merchants from China are keeping their price quotes starting from 6.78 and going to 6.98 per yuan in exchange for USDT. At the same time, the offshore yuan still stands at 7.07 for a dollar in the real money value.
Annabelle Huang, a managing partner at Amber Group, commented on the situation that she can witness a link between demand to trade and onshore A shares. She added that during the Golden Week holidays in China, some brokerage firms showed interest in taking up new customers.
Laura Vidiella del Blanco, the head of BD and strategy at MNNC Group claims that the retail investors are not the only factor in escalating the demand, but some institutional investors from the company are also involved in this.
China’s Interest in cryptocurrencies
If we take a look over the composite index of Shanghai, it surged over 21% on September 30, as compared to that on September 23. On October 1, the market was shut down because of the holiday.
The Asian region is filled with authorities who know the market well and have found many other ways and strategies along with digital assets, the head of BD and strategy further added.
As per the reports from Chainalysis Inc., an American blockchain analysis firm, an extraordinary inflow has been marked this year by the over-the-counter brokers of China. It shows that many investors from China have an immense interest in cryptocurrencies and they don’t care about the ban by the officials.
The national holiday was shorter but yet it showed an outstanding step towards cryptocurrency.
