Real Volumes Revealed? How China’s Bitcoin Market is Adapting to a New Age of Fees

coindesk-bpi-chart-97

Bitcoin volumes fell sharply yesterday, a move that illustrated the market’s strong response to a previously announced decision by China-based exchanges to end ‘no fee’ trading policies and halt margin lending.

Though analysts had long speculated as to what the result of the change would be (given assertions that the markets were being bolstered by high-frequency traders), the results have so far been more extreme than projected.

Overall, the lower volume at these three major exchanges has had a depressing effect, reducing transaction activity across the board.

btc-24h-everything

In response, analysts quickly highlighted the potential benefits of the situation.

Entrepreneur and investor Vinny Lingham described the declines as “healthy and positive moves”, predicting the market will enjoy new and genuine price discovery.

Petar Zivkovski, COO of leveraged bitcoin trading platform Whaleclub, also provided an upbeat assessment, telling CoinDesk:

“The enormous amount of fake volume was misleading traders. Now that a fee applies for each trade, auto-trading bots can no longer function profitably, price manipulation is less pervasive, and volumes have plummeted. Volatility is expected to drop as well.”

While the input of these market analysts can certainly prove insightful, it is helpful to

Read more ... source: CoinDesk

Let's block ads! (Why?)

Powered by Bitcoin Central