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When China introduced limits on leveraged Bitcoin trading people were uncertain what the future would hold. Some experts even predicted far less speculation, which would lead to sideways price movements. As it turns out, the curbed leverage trading limits are slowly pushing the Bitcoin price upwards. It appears these limits have a positive effect on the Bitcoin market as a whole.
Albeit some people would argue the Bitcoin price charts looked boring over the past week, things are turning out alright. The value per BTC has been rising steadily over the past few hours. It is unclear why the price is going up, but it appears to be in a controlled fashion. Unlike a few weeks ago, when the price shot up like a rocket and came crashing down about a week ago.
China’s Limited Bitcoin Margin Trading Pays Off
One could argue this change is driving by China’s new margin trading limitations. All Bitcoin exchanges have limited or removed margin trading from their platforms. Speculators were able to leverage at rates of 100x, causing wild Bitcoin price momentum. Now that this is no longer possible, things are looking far more stable where Bitcoin is concerned.Even the upward price momentum seems organized and stable, which is a positive development.
There will always be people who feel the PBOC intervention is unjust. At the same time, it is hard to argue the benefits of this decision. In fact, it hasn’t even affected the overall Bitcoin trading volume whatsoever. China remains the driving force of all Bitcoin trading, and that situation will not come to change anytime soon. More importantly, it appears the PBOC has no plans to make life difficult for Bitcoin users.
Looking at the trading volume charts, the CNY volume across exchanges seems to be doing quite well. BTCChina is seeing a large amount of trading over the past few hours, taking away bits of momentum from OKCoin. Huobi is still firmly in third place. LocalBitcoins, on the other hand, is seeing only a fraction of the volume other platforms are dealing with right now.
It is positive to see a new Bitcoin rally bloom on the charts without crazy volume. To be more precise, the trading volume has remained unchanged, yet the US$100 gains overnight seem a thing of the past. That is a good thing, as slow and steady will win the race. For now, things are looking positive for Bitcoin and speculators, even without traditional margin trading opportunities.
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