China bitcoin market
Dec 12, · For many years, China has consistently been a major market for bitcoin miners due to its cheap electricity and affordable resources. Companies like . While the clampdown caused the bitcoin price in China to tumble as much as 8 percent on the day of the announcement, it has since recovered to 24, yuan ($3,) on Chinese exchange Huobi. May 03, · Shares When it comes to Bitcoin, there are no greater markets than the United States and China. And just as the culture and idiosyncrasies of these two financial powerhouses contrast like night and day, the countries’ approach to Bitcoin trading -and cryptocurrencies in general- is a reflection of their deeper identities.
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Outside crypto, the size of the derivatives market is multiple times that of spot markets. This is not the case yet with crypto markets. Although there are many crypto derivatives exchanges, very few of them are regulated or would pass operational due diligence by institutional investors.
In , crypto derivatives will be an area to watch. Open interest on bitcoin futures on the CME has recently been at record highs and will be a good barometer of investor appetite going forward.
This space still offers a lot of opportunities for firms that understand the institutional-grade requirements, from counterparty risk mitigation and high-speed connectivity to being regulated. That will provide great opportunities not only to existing players many of whom have been institutionalizing quite quickly but also to potential new entrants and traditional institutions.
Move away, Hoodies: Here come the Suits to professionalize the industry. Many in the first generation of crypto entrepreneurs came from tech backgrounds. But now, many of the larger crypto firms have decided to institutionalize by bringing aboard individuals with institutional financial services backgrounds to run their businesses, with numerous recent examples from crypto native firms like BitMEX to new ventures like Diem.
We should expect this trend to accelerate in However, the crypto industry is a sink or swim environment. Some will be able to adapt and be very successful in building the next bridge towards the future of money. Some months, trading volumes on certain DeFi exchanges were bigger than those at some of the large traditional exchanges. In , DeFi is likely to grow further. While it is unlikely we will see institutional investor interest in the sector, the dedicated group of folks from the crypto community working in this exciting area will continue to make breakthroughs.
Some of the features of DeFi, like composability , for example, give us an opportunity to reimagine financial services with a first-principles approach. All eyes here will be once again! Diem aims to make sending money around the world as easy as sending an email or a message on WhatsApp. While stablecoins already play a big role in crypto trading , one area to watch in is whether usage of stablecoins picks up when it comes to cross-border commercial transactions.
Data suggests usage of stablecoins is already increasing in certain corridors, such as between Latin America and Southeast Asia for example, where merchants are using stablecoins to settle transactions, completely bypassing the traditional banking rails in the process.
In , it will be interesting to see if this trend continues. And is shaping up to be even more exciting! Do you agree or disagree with the above predictions? Feel free to reach out to me on LinkedIn or Twitter. And there are no signs of the momentum slowing down in ! Here are my 10 crypto predictions for the coming year:.
Subscribe to Money Reimagined , our newsletter on financial disruption. China leading the CBDC and future of money race. The taxman provides crypto tax clarity. Retail investors and my mom! Traditional hedge funds and family offices rushing into crypto. Crypto derivatives exchanges growing up. New regulations driving traffic to DeFi. Stablecoins play a bigger role in cross-border transactions. My wallet is my wallet. The Chinese government on Sept.
Over 15 exchanges, including the three largest players OkCoin, Huobi and BTCChina, have since announced that they will close their mainland businesses by the end of September. Trading has spiked generally on peer-to-peer marketplaces, according to data website Coindance.
It hit an all-time-high in the week starting Sept. Volumes on Paxful, another smaller marketplace, also jumped to 1. Michael Foster, co-founder of localethereum. Some said they were still seeing overseas-based ICOs being marketed in China. The Sept. Overseas ICOs have been returning money on a voluntary basis.