Despite China's strict bans on Bitcoin and cryptocurrencies, the bans do not prevent its citizens from investing in BTC and other digital assets.
In the face of economic difficulties in China, Chinese investors are taking refuge in Bitcoin and other cryptocurrencies.
Chinese Turn to Bitcoin and Cryptocurrencies!
While China's efforts to revitalize its economy with the incentive policies it has recently implemented continue, it has been revealed that Chinese investors have been investing in Bitcoin and cryptocurrencies for a long time.
According to the latest research by the famous analysis firm Chainalysis, there was an inflow of $75.4 billion to OTC platforms in China in the three-quarter period until June.
Eric Jardine, cybercrime research lead at Chainalysis, noted that the bans in China have not been implemented seriously, given the heavy use of OTC services in the face of a ban on trading and mining cryptocurrencies.
“In 2021, China banned the trading of Bitcoin and other cryptocurrencies. However, OTC figures show that despite the bans, there is still a huge demand for digital assets, including BTC, in China.
As long as the bans continue, demand for OTCs will continue to grow in China.”
A week after the FED's 50 basis point cut, the People's Bank of China also announced an interest rate cut and incentive policy. Following this announcement, Bitcoin rose to $64,000. Analysts who stated that Bitcoin has been quite sensitive to macroeconomic events recently think that BTC could reach a new ATH due to the impact of macro events.
*This is not investment advice.