China’s Crypto Affinity Drops As LocalBitcoin Volume Drops To 2-Year Lows

    China’s BTC trading volumes have hit an all-time low in two years with the peer to peer (p2p) exchanges on LocalBitcoin. As of the week of Jan. 25th the trading volumes stagnated at a mere 4.5 million Yuan ($640000).

    This recorded a 90% downturn in trading volumes from a weekly average of 45 million Yuan ($6.4 million) they previously achieved. In Jan. 2018 the Bitcoin trading volumes soared at an all-time high of a reported 168.6 million Yuan ($24.3 million).

    Although it’s not clear what specifically could have led to the gradual fall in the trading volumes, there are various factors that could have acted as catalysts.

    Blockchain not Bitcoin Approach

    In recent times China has urged its residents to adopt a Blockchain not Bitcoin approach. Just barely 3 months ago, on Oct 2019, China’s President, Xi Jinping was keen to encourage the country to hasten the uptake of Blockchain Tech.

    China has observed over 700 new Blockchain firms founded just in January 2020, with over 26,089 of such companies being operational currently. If the average monthly rate of founded Blockchain firms remains the same as in January, China would see 8,565 new Blockchain-related companies this year

    The Chinese state run media was quick to iterate Beijing’s lenient position on Blockchain Tech wasn’t an endorsement on various cryptocurrencies such as the BTC. Notably seen when China banned ICOs in 2017 and recently shut down close to 173 crypto exchanges.

    However late last year authorities in China allegedly claimed that Bitcoin mining wouldn’t be considered illegal in the country.

    This is as China’s central bank, the People’s Bank of China has made strides in the quest towards coming up with its own Central Bank digital currency with reports claiming they completed first tests already.

    More Pressing Concerns

    While Longhash reported a new low on Baidu, china’s search engine, of Bitcoin related searches. Data from both search engines and social media have been key indicators of price movement.

    However with China dealing with a viral outbreak (Coronavirus), showing that they are currently facing more pressing issues and with the beginning of the Lunar year, majority of the enthusiasts might have opted for more family time.

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Lujan Odera
    Lujan Odera
    Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


    Please enter your comment!
    Please enter your name here


    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Danone Launches ‘Track & Connect' Putting Baby Formula Supply On Blockchain Technology

    Danone is applying for the first time blockchain, aggregation and serialisation technologies for its infant formula packs. David Boulanger, the company’s senior VP of...

    Deribit Exchange Launches Ethereum Daily Options After Success With Bitcoin Contracts

    The Deribit Exchange specializing in crypto derivatives has launched daily Ether (ETH) options, an announcement from Monday and made on Twitter says. The strike price...

    Central Bank of Russia Proposes Amendments To Legal Framework for Tokenization

    The proposed cryptocurrency legislation in Russia could change a lot, now that a new bill for tokenization has been filed. On February 17, the Central...

    Ripple (XRP) Price Analysis (February 17)

    Key Highlights XRP market is under a falling force by the US dollar price valuation. XRP/USD pair’s value now averages a low point at...

    Binance Applies for Singapore Crypto License Under The New Payment Services Act

    Binance crypto exchange through its parent company has applied for Singapore’s new operating license. This follows an upgrade of laws governing crypto in the...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.