Bitcoin, Ethereum Prices Stabilize as Chinese Yuan Trade Continues
- Chinese crypto-currency exchanges are still seeing healthy Yuan-based turnover.
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Bitcoin (BTC), Ethereum (ETH) Move Higher but Worries Remain.
The crypto-currency market posted modest gains in early European turnover, continuing the uptick seen overnight in Asian hours. The gains remain subdued however as the market awaits further details on Friday’s talk that China will ban crypto-currency trading on domestic exchanges. The news, in a Caixin report, sent the crypto-currency market sharply lower on Friday afternoon, wiping out the week’s gains.
Earlier in September, Chinese financial regulators also took aim at the ICO market, banning new projects from raising cash via crypto-currencies.
Chart: Bitcoin (BTC) Price Four Hour Timeframe (August 30 – September 11, 2017)
Chart by IG
Chart: Ethereum (ETH) Price Four Hour Timeframe (September 4 – September 11, 2017)
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Chinese Exchanges see Healthy Yuan-based Turnover
Despite the news of the potential ban, Chinese exchanges, including BTCC, OKCoin and Huobi continued to see good turnover in a range of crypto-currencies.
Any shutdown in Chinese Yuan-based trading would have a negative effect on the crypto-currency market, hitting volumes hard. China is one of the biggest trading markets and overnight moves and interests shape European trading. The Chinese authorities are seemingly looking to exert further control over Yuan, making it harder and illegal to move money abroad via a deregulated marketplace.
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--- Written by Nick Cawley, Analyst.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.