CNY Trading Fees BTC
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Chinese Bitcoin Volume Drops As Trading Fees Are Reinstated

Avatar newsbtc 2 years ago

Bitcoin trading volume has been plummeting across all major Chinese exchanges. That is not entirely unexpected, considering these platforms have removed most of their margin trading options. Moreover, trading fees have been reinstated across Chinese exchanges, which will heavily impact trading activities. For the time being, this has not impacted the Bitcoin price all that much, though.

The one-hour trading volumes across most major Chinese bitcoin exchanges took a big hit. Earlier tonight, OKCoin’s volume dropped by 89% compared to Monday. BTCC and Huobi were hit by similar declines. Interestingly enough, now that trading volume is drying up, the bitcoin price remains virtually unchanged. That is a positive sign for this otherwise volatile cryptocurrency, and a somewhat unexpected development.

Trading Fees Return On Chinese Exchanges

Over the past few years, Chinese bitcoin exchanges have been dominating the trading markets. That was mainly due to there being no trading fees across the cryptocurrency markets, allowing for high volume and volatility. However, that situation has come to change, as all Chinese exchanges reinstated trading fees on Tuesday evening. Most of these platforms had hinted at this upcoming change, ever since the PBOC investigated these companies a few weeks ago.

It is evident this change will impact the bitcoin landscape as a whole. Now that every trading region has trading fees once again, volatility in the market will come to a halt over time. No one wants to sell bitcoin and take a big hit due to the trading fee. It is a mental hurdle that needs to be overcome by Chinese traders. It is positive to see the BTC price has not changed all that much, despite a small sell-off yesterday evening.

Speculative trading has been a thorn in the side of Chinese regulators. All bitcoin exchanges in the country either removed leveraged margin trading, or reduced to it to 1x leverage. This will affect the CNY bitcoin volume, and other exchanges may benefit from this change. Chinese bitcoin exchanges want to appease regulators, even if that means taking some difficult decisions.

In the long run, suppressing volatility and speculation will be positive for the bitcoin market. The markets have been dominated by speculators for many years now, creating a very volatile ecosystem. That situation has now come to a screeching halt, and it will be interesting to see how things evolve in the next few weeks. All things considered, this is a positive development for bitcoin.

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