Chinese Traders Pay Extra for Bitcoin As They Return To Trading
Bitcoin’s price surge last week has made Chinese traders to return to trading. The traders also had to pay a premium for returning according to a social media-based news account cnLedger on April 7th.
Reproducing price spreads from cryptocurrency exchanges Huobi and OKEx, cnLedger revealed an increasingly common practice among Chinese traders who wish to acquire Bitcoin.
According to Cnledger, since China formally banned cryptocurrency trading in 2017, investors have had few options. Purchasing stablecoins such as Tether (USDT) via over-the-counter (OTC) services and converting them to other cryptocurrencies has become the principal method.
Now, in the wake of a bullish week for Bitcoin which saw BTC/USD advance by over $1,000, prices for those OTC services have steadily risen in CNY terms, marking an increase in demand.
The source summarized all saying: “Chinese markets reveal strong buys,” The tweet stated:
“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.”