- By Pierre-Alexandre
April 8th, 2019
Chinese investors buying Tether at a higher price
Cryptocurrency investors in China are purchasing the USDT stablecoin at a higher price on over-the-counter (OTC) platforms. This activity was reported by cnLedger, a Twitter account that tracks cryptocurrency and blockchain activities in China:
1/ Chinese markets reveal strong buys. 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. pic.twitter.com/bd0n0DGFVU— cnLedger (@cnLedger) April 8, 2019
The author of the Twitter account posted screenshots of purchases made on Huobi and OKEx OTC platforms, which shows that investors were purchasing USDT at 7 CNY, which is higher than the official rate of 6.7 CNY. cnLedger explained that buying the stablecoins from OTC platforms and subsequently trading them on cryptocurrency exchanges was the easiest way for investors and traders in China to buy Bitcoin and other cryptos. The ban on cryptocurrency exchanges and ICOs in China has made it very tough for traders and investors in the country, and they have devised other means to access the crypto market, and this method is one of them.
Bitcoin price could reach $16,000 in October
An anonymous user on 4chan predicted earlier this year that the Bitcoin price would reach $5,300 by April. The price of the leading cryptocurrency was able to surpass the $5,000 mark earlier this month, and the post by the anonymous poster went viral:
According to the post by 4chan, BTC price would continue on its upward trend and reach the $16,000 mark by October 2019 while he sees it reaching $87,000 by November next year. By February 2020, Bitcoin would have a new all-time high, as 4chan forecasted that it would be trading around $29,000 per coin.
The anonymous poster claimed that the BTC price bottomed out in December last year and a look at the chart confirms that. The BTC dominance is currently 51%, but 4chan sees that dropping to 40%-46% once the prices start increasing.
CME Bitcoin Futures volume up by 950% in four days
The CME Group revealed last week that its Bitcoin Futures volume had reached a new high after 22,500 contracts were executed, totaling 112,700 BTC. This was a sharp rise as the contracts were just 2,000 on April 1, signaling a 950 percent rise in the space of four days:
CME Bitcoin futures had a record trading day on April 4, hitting an all-time high volume of over 22.5K contracts (112.7K equivalent bitcoin), surpassing previous record of over 18.3K (64.3K equivalent bitcoin) on February 19. More #Bitcoin futures. $BTC_F https://t.co/kWYK203apA pic.twitter.com/CX5nF8dXyv— CMEGroup (@CMEGroup) April 5, 2019
The new high also trumped the previous one of 18,000 contracts which were recorded on February 19, 2019. The fact that CBOE has put on hold its Bitcoin futures and the sudden spike in BTC prices could have led to CME achieving record volumes on its BTC contracts.
LocalBitcoin experiences new high in Venezuela following a price hike
The Bitcoin price increase has had a ripple effect in the cryptocurrency space over the past few days, with altcoin prices surging as a result of the recent hike. However, it also had other effects, LocalBitcoin experiencing record volumes in Venezuela last week.
Last week, the peer-to-peer cryptocurrency exchange recorded transactions worth 26.4 billion sovereign bolivars (VES). While it is not a record volume in terms of Bitcoin, the high volatility of VES has seen most people in the country turn to cryptocurrencies to preserve their wealth.
The increase in transactions indicates that there is a growing confidence in Bitcoin by Venezuelans above their fiat currency and the national cryptocurrency, the Petro.