Chinese Markets Reveal Strong Bitcoin Buys With Tether Fueling The Crypto Market Money Inflow
Chinese Markets Reveal Strong Bitcoin Buys With Tether Fueling The Money Inflow
With Tether (USDT) primarily fuelling the current rally as Tether volumes take a significant hike, BTC is seeing strong buys from the Chinese market as USDT premium goes up.
USDT Registers Highest Trading Volume
In continuation of the bullish rally from last week, the total volume that has now come down to $61 billion, at one point reached $89 billion on April 3rd. In comparison to the market’s peak in December when the volume registered at $28 billion, as per Coinmarketcap, the figure is extremely high.
Volume is of most importance in a market as it is the value of transactions traded in a market at a given time. In a market, for each buyer, there is a seller.
High volume certainly reflects higher interest but volume is also an indication of market movement as the higher the volume during the price move, the more significant is the move.
Now, with the recent fake volume report, the fact that Tether has the highest volume in the crypto space currently and has been throughout this rally even more so than BTC, one needs to tread cautiously.
— CryptoKea (@CryptoKea) April 8, 2019
Back in December 2017 when Bitcoin was at $19,100, as per Coinmarketcap data, the daily trading volume of BTC had been $13.3 billion while Tether registered $1.9 billion. Now, at the time of writing BTC volume reached $17.2 billion as per Coinmarketcap and $671.5 million as per Messari’s Real 10 while Tether’s is at $18 billion.
I keep hearing that we need new money to get back to ATH, but think about all the money parked in Tether and other stable coins. These are people who never actually left #crypto.
Also an interesting metric to watch.
— Jonathan Habicht🔥 (@HabichtJonathan) April 4, 2019
China Paying Premium On USDT
USDT seems to be at work here as the USDT premium is going up by .3 CNY as reported by cnLedger. The Chinese market is showing strong Bitcoin buying momentum as Over-the-counter (OTC) trades that are about is the only way to buy Bitcoin with fiat in China are showing “considerable premium” in USDT.
While the official rate is 1 USDT equivalent of 6.7 CNY, the added premium has taken it to 1 USDT equivalent of 7 CNY.
“Why the USDT premium going up? After the PBoC ICO/exchange ban, the most convenient way to buy cryptos in China, is to buy stable coins like USDT first using OTC, and then trade it into any cryptos you want in exchanges,”