Now that the cryptocurrency market has seemingly bottomed or is near its bottom, an influx of Chinese Yuan (CNY) has entered the market, most of which going to Bitcoin (BTC).
According to data from Coinlib, money flow into Bitcoin over the past 24 hours shows the Yuan is the second-top entry fiat currency at $161.25 million, after the US Dollar (USD) at $246.34 million.
And it’s not just Bitcoin. Coinlib data shows $74 million worth of Yuan went into Ethereum, and over $20 million went into Stellar.
In total, $255 million worth of CNY has gone into crypto over the past 24 hours, making CNY the second-top fiat currency entering crypto after the US Dollar.
Additional Money Flow Data Indicates Chinese Crypto Investors Turn Bullish
In addition to the data provided by Coinlib, which aggregates data from leading cryptocurrency exchanges, peer-to-peer (P2P) exchange volume is showing an increase in Chinese capital to the markets as well.
LocalBitcoins, the popular P2P/over-the-counter (OTC) Bitcoin marketplace has experienced an increase in volume by over $2 million from the previous week. According to their data, 25.4 million CNY ($3.7 million) was in crypto trade for the week of 2019-03-16.
Moreover, top international cryptocurrency exchanges like Binance, ZB.com, OKEx, and Huobi in which Chinese traders buy and sell crypto have experienced increased trade volume.
Other Data Indicates Chinese Crypto Market Is Bullish
Apart from the significant increase in flow of Yuan into crypto, developments surrounding the Chinese Bitcoin mining industry point towards bullish sentiment.
For instance, the China-based mining giant Canaan has reportedly captured hundreds of millions of dollars in new funding, and other giant Chinese miners are stocking up on new and used mining equipment.
Also, Chinese mining companies have been preparing their mining farms and negotiating electricity rates leading up to the upcoming wet season in Sichuan, which is when a lot of cheap electricity will be generated.
As well, the Bitcoin halving is about a year away now, so Bitcoin miners will be trying to acquire as much as they can leading up to the highly anticipated event which has historically led to a significant bull run in Bitcoin’s price.
Bitcoin Price Shows Steady Growth
Over the past 7 days, the value of Bitcoin has seen steady growth from $3,900 (on March 13) to $4,050 (at the time of writing), according to CoinMarketCap. Thus far, Bitcoin has managed to hold above $4,000 for 5 days. which is the longest amount of time above $4,000 since November of last year.
Therefore, with an influx of Chinese capital flowing into Bitcoin and Bitcoin miners preparing for the halving, Bitcoin may just be in the midst of a trend reversal. However, only time will tell as anything can happen in this volatile cryptocurrency market.
Do you think a continued influx of Chinese capital into the crypto markets is enough to lead crypto out of the bear market? What else will contribute to Bitcoin’s next bull run? Let us know what you think in the comment section below.