Despite the stringent regulations and bans imposed by the Chinese government on Bitcoin and cryptocurrencies, Chinese investors are still finding ways to invest in digital assets. In light of the economic challenges faced by China, these investors are seeking refuge in Bitcoin and other cryptocurrencies.
Recent research conducted by the renowned analysis firm Chainalysis has revealed that there has been a significant influx of $75.4 billion into over-the-counter (OTC) platforms in China during the three-quarter period leading up to June. This indicates that despite the bans, Chinese investors are showing a strong demand for digital assets, particularly Bitcoin.
Eric Jardine, the cybercrime research lead at Chainalysis, has emphasized that the bans have not been effectively enforced, as evidenced by the widespread use of OTC services by Chinese investors for trading and mining cryptocurrencies. He predicts that as long as the bans persist, the demand for OTC platforms will continue to grow in China.
The recent interest rate cut and incentive policy announced by the People’s Bank of China, following the 50 basis point cut by the Federal Reserve, have further fueled the interest in Bitcoin. As a result, the price of Bitcoin surged to $64,000. Analysts believe that Bitcoin has become increasingly sensitive to macroeconomic events and anticipate that it may reach a new all-time high due to the impact of these events.
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