China is the digital hub for the world and despite its crackdown of cryptocurrency exchanges since 2017, which restricted the flow of Chinese Yuan to the digital asset market. However, the recent spike in Shanghai composite, 24 percent to be precise, it is being observed that CNY is steadily moving into the digital asset market again.
The recent increase in cryptocurrency volumes across various platforms and amid the crypto market gains, the crypto community have noticed that the Chinese Yuan (CNY) is being poured into the crypto trade market again.
On March 17th, one of the BTC traders in China who goes by the name Anton Pagi tweeted to his followers that the recent gains in the market are fuelled by CNY. While explaining the recent trend, Pagi said,
“Something to watch during this bull run, Chinese profits from their roaring stock market in recent weeks flowing into bitcoin,”
Pagi also mentioned that exchanges dealing in CNY have recorded double volume than others in the last week alone. The observation was most prominent on Shanghai Composite, which recorded a surge of 24 percent. The speculations are on the rife that investors are moving into alternative markets.
Data From Different Exchanges Reconfirm the Surge
Apart from the BTC trader Pagi, data from various cryptocurrency data collecting websites seem to suggest the same. Take localbitcoins volume into consideration, which has gone from 12.5 million yuan in February end to 25.4 million during the last two weeks price rally. The CNY volumes have almost doubled.
Similarly, the peer-to-peer trading platform Paxful has recorded a significant bump in its CNY/BTC trading volumes in the last two-week period. Looking at the progress in the digital asset market, the country’s Premier Li Keqiang has pledged to cut taxes and deregulate the tech industry in order to fuel the slowing Chinese Economy.
China Has Recorded $250 Million CNY-Crypto Trade Pairing
The CNY to crypto trading has seen a dramatic rise over the last 2-hour period, and the data from various websites suggest that the inflow of CNY has recorded $250 million worth of trade volumes in CNY/crypto trading.
According to the data published by Coinlib.io, the Chinese market has seen $163 million worth of CNY into the Bitcoin trading market, followed by $74 million worth of CNY/ETH trading and $19.7 million worth of CNY/XLM trading. The recent surge has ensured that CNY is only listed behind the US dollar in terms of crypto trading pair.