Chinese traders eager to buy more crypto after restrictions imposed
Even after the recent crackdown on the cryptocurrency mining and trading industry in China, some traders and investors remain bullish, saying that they are buying the dip instead of getting rid of their digital assets, Bloomberg reports.
Prior to the emergence of bearish news from China, Bitcoin was trading at the $ 48,000 level. But right after the People’s Bank of China announced that it will seize all cryptocurrency-related transactions, including both digital assets and fiat, and block cryptocurrency exchanges that allow citizens to trade and keep accounts offshore, Bitcoin’s price plunged down to $42,000.
Major exchanges like Huobi and Binance have ceased to operate in the country and have banned the opening of new accounts for users in mainland China. Hong Kong users are still able to open new accounts.
While the mining industry in China suffers greatly from the restrictions, some cryptocurrency traders and investors who have already had the “China ban Bitcoin” experience, are more than happy to buy the cryptocurrency at a high discount.
The CEO of Ballet Global Inc, Bobby Lee, stated that he bought some crypto after the initial dip. After hitting the local low of $ 40,000, Bitcoin almost immediately returned to nearly $ 45,000.
Numerous traders from China have told Bloomberg that there are still various options for buying cryptocurrency, including OTC trading desks and some centralized exchanges. The policies presented are neither new nor surprising, which is in line with the general reaction to the actions of the People’s Bank of China.
The positive market sentiment is being confirmed by Bitcoin’s price action. The cryptocurrency rallied slightly after the decline, but is currently heading towards and is trading at $ 41,900. According to Bloomberg’s source, the possible prohibition of digital asset holding most likely will not be enforced due to the decentralized nature of cryptocurrencies, which makes them technically impossible to seize or block.
