Chinese cryptocurrency traders have resorted to Over the Counter trading platforms in an effort to partake in the current market bull run. According to a report these traders are willing to pay an extra price just to lay hold on Bitcoin. The OTC platforms seem to be the most accessible method for them to acquire a lot of Bitcoin and leverage on the current surge in price.
The crypto market experienced a sudden swoop last week as prices soared above the invisible barriers that seemed to have pinned it for the past few months. Bitcoin price rose to $5200 over the weekend, with a 3.2% increase rate within 24 hours at a market capitalization of $91 billion. This spike in the crypto price also stirred up the interest of Chinese trades to seek Bitcoin at all cost.
Since China officially banned crypto trading in 2017, investors have limited options. Looking up to the OTC trading platforms seems the best way to the argument for the shortage in supply of cryptos. Purchasing Stablecoins coins like Tether (USDT) via OTC and converting them to bitcoin has become the most suitable way.
Chinese markets reveal strong buys. OTC (Over-The-Counter) trades, the almost only way to buy bitcoin with fiat in China, showing considerable $ premium (1 USDT = 7 CNY) over the official rate of 1 USD = 6.7 CNY.
Though crypto prices are higher in the OTC platforms than the regulated exchanges, the Chinese investors still willingly patronize these platforms. The report also shows that the number of activities on the regulated exchange’s platform has increased since crypto prices went up last week.
China is known to be ahead of other countries in crypto and blockchain awareness. We recently reported that China now has more blockchain related projects than any other country. Since the authorities still support the development of blockchain technology.