China returns to investments in Bitcoin despite the continuing trading ban on the cryptocurrency. This is the reason why Bitcoin’s price is holding higher, data suggests.
Coinlib, the monitoring resource, has gathered statistics that show an inflow of capital into cryptocurrencies including Bitcoin which has put the CNY (Chinese Yuan) amongst the top entry currencies.
CNY’s inflow into Bitcoin has topped $165 million (or its Yuan equivalent) for the last 24 hours. Ether, the largest of the altcoin, has seen slightly less than $75 million in this same period. This performance has put China in second place of all the fiat entry assets, behind the USD predictably. The largest of inflows have come from Tether, the cryptocurrency stable coin.
Is Bitcoin emerging again?
These figures have appeared when China's economy seems to be coming out of a six-month-long retraction, specifically with the mining giants. Bitcoinist reported that Bitmain and other entities announced significant cost-cutting and downsizing initiatives after Bitcoin’s price drop in November 2018 (from $6500 down to $3100).
However, lately, there has been some good news within the industry. Bitmain’s main competitor, Canaan Creative, closed a round of funding in early March which claimed to be worth “hundreds of millions” of US dollars. Bitcoin continues to trade around the $4000 mark, which could mean that there's a renewed faith in what used to be the biggest market for investment. The indicators lie in other places too. FatBTC, the biggest exchange for only cryptocurrencies for Chinese clients, has increased volumes by over 50% within the last day alone.
Nevertheless, the lawmakers in China have not hinted that they are going to have another look at the 2017 decision to ban all trading options of locals. Being more in favor of Blockchain tech, only cryptocurrency holding remains legal.
In March, research revealed that China has the most blockchain patents, numbering almost 800.