The months-long bitcoin withdrawal freeze in China is coming to an end, as major exchange BTCC resumes bitcoin withdrawals.
The new month brings with it reports of another prominent exchange lifting its withdrawal freeze. BTCChina has stated that it has begun “testing” bitcoins this week. In joining OKCoin, that’s two of the ‘big three’ Chinese exchanges resuming withdrawals following regulatory scrutiny by the People’s Bank of China (PBOC).
China’s central bank began investigating trading and business practices of regional exchanges that drove what was then the world’s largest bitcoin trading market. It was nearly six months ago on January 6 when PBoC officials met with BTCC and followed it up with “on-site checks” of China’s biggest exchanges.
For its part, BTCC claimed it “regularly meets with the PBOC” to work in accordance of laws and regulations while adhering to “strict AML/KYC policies”. It wasn’t long before the financial regulator’s tightening squeeze was felt in the Chinese bitcoin ecosystem. Exchanges stopped margin trading completely and enforced trading fees in January alone.
Come February, OKCoin and Huobi paused bitcoin withdrawals, a temporary measure that was expected to last a month at the time. BTCC followed suit and halted withdrawals a week later. The freeze continued through March, with BTCC stating that withdrawals would only resume after regulatory approval.
In mid-May, CCN reported that the months-long PBOC’s inspection of exchanges was coming to an end. Withdrawals were to be expected in June, with rumors of ‘punitive’ penalties to be imposed on bitcoin exchanges. Details of the punishments, if any, are currently unknown.
Prominent Chinese cryptocurrency news source cnLedger confirmed BTCC resuming withdrawals.
The impact on Chinese markets has been telling. Having accounted for 10% of the world’s bitcoin trading early on Wednesday, news of OKCoin allowing withdrawals spurred investor activity to nearly 20% of the world’s trading volumes on the day.
On Thursday, following BTCC’s announcement, trading in Chinese markets is now at nearly 25% of the global market over a 24-hour period.
OKCoin, traditionally one of the world’s largest bitcoin exchanges by trading volume is now making a comeback, as is BTCC.
It’s likely to be only a matter of time before Huobi, the other ‘big three’ Chinese exchange, follows suit.
Bitcoin Could Top $100,000 in 10 Years, Says Previously Accurate Analyst
An analyst who, in late 2016, correctly predicted that bitcoin prices would trump $2,000 this year has now forecasted bitcoin price to hit beyond $100,000 in 10 years.
As CCN reported in early December 2016, a “2017 Outrageous Predictions” report by Saxo Bank – a Danish investment and trading institution – made a number of forecasts about stocks, monetary reserves, commodities and banks around the world. In that report, analyst Kay Van-Petersen also called bitcoin to be punching above $2,000 under a Trump administration. On May 21st, bitcoin price struck $2,000 and went on to hit an all-time high above $2,750.
Now, Van-Petersen, who describes himself a skeptic of central banks (the Fed, Bank of Japan and the ECB in particular) and a ‘Bitcoin newbie’, Crypto Gambling sees more bullish gains for bitcoin over the next decade.
In conversation with CNBC, the analyst sees prices topping $100,000 in ten years and explains the reasons behind his prediction.
Firstly, Van-Petersen sees cryptocurrencies growing tremendously in the global trading market in the coming years. Enough for all cryptourrencies to equal 10% of the average daily volumes of global fiat currency trading, in 10 years.
“This is not a fad, cryptocurrencies are here to say,” Van-Petersen told the publication.
The average daily volumes of foreign exchange trading scales over $5 trillion in the present day. With this as the scale, Van-Petersen sees cryptocurrencies reaching 10% of that figure, or $500 billion in daily trading, in ten years. If bitcoin – conservatively – totals 35% of the cryptocurrency market share (it currently stands at 45%), daily bitcoin trading volumes would reach $175 billion.
The analyst also sees bitcoin’s market cap to be 10x that of its average daily trading volume in ten years, which would see the cryptocurrency reach a market cap of $1.75 trillion. Divide that figure by an estimated potential 17 million bitcoins in supply in 10 years and each mined bitcoin in circulation would be worth over $100,000.
Van-Petersen sees bitcoin as one of two or three main cryptocurrencies that will dominate in the coming years. “And the reason is the first-mover advantage, the scale and the pioneering,” he added.
While the analyst’s prediction is undoubtedly bullish – it represents a 4500% rise from current bitcoin prices – it pales in comparison to that of PayPal director and bitcoin executive Wences Casares. A week ago, Casares, an early tech entrepreneur who is now chief executive at bitcoin wallet Xapo, predicted bitcoin to hit $1 million over the next 5-10 years.