Chinese traders weather the first shock from authorities’ criticism of Bitcoin

The USDT-to-yuan rate retraced more than half of its 4.4% losses, recorded after the release of a Xinhua News Agency piece with criticism of Bitcoin and cryptocurrency mining, Bloomberg.

The rise in quotes may indicate that the peak of selling in digital assets has passed, the publication says. They noted that data on off-exchange platform trades cannot be aggregated. The exchange rate of the stablecoin to the national currency can be regarded as an indicator of local traders’ sentiment.

Bloomberg believes that off-exchange platforms may feel less pressure from authorities. Trading on them does not entail risks of capital outflows from the country compared to Bitcoin exchanges.

“The yuan-denominated portion of [off-exchange] deals takes place entirely within China’s domestic financial system. The risk of large-scale capital outflows is small”, the article says.

The publication contends that Chinese traders still constitute the majority of global cryptocurrency trading. In 2017, before the ban on Bitcoin exchanges, it accounted for 80%.

Earlier, cryptocurrency exchange Bybit предупредила about introducing restrictions for Chinese IP addresses from June 15, 2021.

Earlier, Huobi and OKEx reduced their service offerings on the mainland: the former ceased offering mining-pool services, the latter temporarily halted trading of the native OKB token on its P2P platform for residents of the country.

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