China will no longer be able to negatively affect the price of Bitcoin, it has only 1% of the total volume of world trade. Although the future of crypto markets in China remains uncertain, the Chinese government will no longer be able to manipulate the market and adversely affect the price of Bitcoin.
On October 16, professor and head of the economy department, Panos Murdukutas, suggested that the Chinese market could reduce Bitcoin’s price below $ 5,000.
The Chinese government has already banned Bitcoin and Cryptocurrencies trading, limiting their trade. As a result, the volume of trading on the Bitcoin exchange market in China has significantly decreased, accounting for about 1% of global transactions in Bitcoin market.
Bitcoin global exchange market has already been restructured, as trading volumes moved from China to more stable, regulated and efficient markets, such as Japan and South Korea.
The last thing the Chinese government can do is to prohibit the use of OTC markets, such as Local Bitcoins. But, trading volumes in China’s over-the-counter markets are only accounting for the Bitcoin trade of about tens of millions of dollars on a weekly basis, which is a small fraction of the global volume of Bitcoin trades, unlike exchanges such as Bithumb, which process hundreds of millions of dollars on auction day.
In the medium term, with the strengthening of the South Korean and Japanese markets, more institutional investors will appear on the global Cryptocurrencies market and Bitcoin’s cryptocurrency trading price will continue to grow at a rapid pace. Over the past four days, Bitcoin’s value has increased from $ 4,500 to $ 5,620, posting a weekly gain of $ 1,120.