A former massive trading market could be the reason behind bitcoin’s latest rally. | Source: Shutterstock
By CCN Markets: Over the past three months, the bitcoin price has risen from $3,911 to $8,120 against the U.S. dollar on major crypto exchanges, demonstrating strong momentum supplemented with a clear rise in volume.
In recent weeks, the interest towards bitcoin on Baidu, the most widely utilized search engine in China, spiked significantly to 2018 levels, which could potentially indicate an increase in the demand for the asset by retail investors.
Tether volume similarly indicates a rise in interest towards bitcoin
In China, it is not illegal to own or store bitcoin as said by the Bank of China’s Law Research Association council member Sa Xiao.
According to CnLedger, a recognized crypto news source based in China:
‘It is legal to own bitcoins in China’ says Sa Xiao, Council Member at Bank of China Law Research Association, cited by The Beijing News. Besides, Xiao considers the occasional exchange of bitcoins between individuals and individuals is legal.
While trading bitcoin and other crypto exchanges remains prohibited and the government has taken various measures to restrict trading, local reports have suggested that individuals are circumventing restrictions to trade at over-the-counter (OTC) exchanges or international exchanges using Tether.
As the trade conflict between the U.S. and China intensified with the imposition of additional tariffs and the retaliation of both countries, the interest towards bitcoin in China has started to surge.
However, global markets analyst Alex Krüger noted that it is possible the increase in the interest in bitcoin and the fallout of trade talks is simply coincidental.