Chinese traders turn to OTC desks

Crypto Signals – Threats from China’s central government appear to have done little to quash local demand for crypto assets.

Chinese traders turn to OTC desks by FxPremiere.com

As Beijing attempts to regulate and suppress the cryptocurrency boom, traders have been evading regulatory oversight by using over-the-counter, or OTC trading desks.

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While exact volume data is hard to ascertain as Chinese OTC transactions are peer-to-peer and use third-party payment platforms, the exchange rate between China’s yuan and popular stablecoin Tether (USDT is seen as a key gauge of local crypto market sentiment — with demand for USDT increasing during market downturns.

According to Bloomberg, USDT/CNY fell by as much as 4.4% after the Communist Party crackdown earlier this month but has since recouped more than half the loss. The recovery suggests that peak selling may have passed as the markets begin to consolidate.

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As a result, Bitcoin’s mining difficulty fell by 16% on Sunday to 21 trillion – its sharpest decline this year. Mining difficulty provides an estimate for the computing power required to produce new BTC.

The network automatically adjusts the difficulty around once a fortnight, responding to levels of competition among miners. The lower it falls, the less competition there is – suggesting that many have already powered down their rigs.

Chinese traders turn to OTC desks

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Chinese traders turn to OTC desks