Earlier today, on September 21, bitcoin price dipped below $3,900 after demonstrating strong signs of recovery on Monday.
On September 19, CCN.com previously reported that bitcoin price surged to $4,040, increasing by over $440 in a 24-hour period. At the time, the global bitcoin market and investors displayed confidence over bitcoin’s mid-term growth.
However, over the past few days, bitcoin has struggled to recover beyond the $4,000 mark. Although bitcoin has fully recovered to the point before the Chinese government imposed a nationwide ban on local bitcoin exchanges and trading platforms, it has remained relatively stable in the $3,900 to $4,000 region.
As of current, the global bitcoin exchange market is restructuring, and the majority of trading volume from the Chinese market has shifted to Japan and South Korea. According to bitcoin market data providers such as CryptoCompare, Japan remains as the dominant market in the global bitcoin exchange market, with a staggering 49.13 percent market share.
More to that, as prominent bitcoin trader and investor Tuur Demeester stated, South Korea is also evolving into a powerhouse within the global bitcoin and cryptocurrency exchange markets. Today, South Korea officially surpassed the daily trading volume of the Chinese market, securing 5 percent in market share.
On August 12, Demeester revealed that Bittrex was the largest cryptocurrency exchange in trading volume, with Bithumb as the close second. But, recently, Bithumb surpassed Bittrex to become the largest cryptocurrency trading platform in the world, securing a trading volume that is larger than that of Bittrex and Bitfinex combined.
Although China only accounted for 10 to 13 percent of global bitcoin trades prior to the nationwide ban on bitcoin exchanges imposed by the Chinese government, it was still a major market behind the US and Japan. Within the past week, South Korea has overtaken China and evolved as a major bitcoin exchange market. As Demeester explained, Bitcoin’s center mass for its price could be in South Korea, considering that it is the third-largest market globally.
So far, the bitcoin industry and global exchange market have dealt tremendously well with the Chinese government’s aggressive restriction on bitcoin trading. Kevin Pham, an early investor in bitcoin and Ethereum, wrote:
“‘China will ban Bitcoin and the price will be near $4,000.’ Absolutely no one would believe you if you said that in 2015.
In the past years, the announcement of the Chinese government to ban bitcoin or any aspect of the digital currency led to a 30 to 40 percent price correction on bitcoin. In the most recent case of the shutdown of the Chinese bitcoin exchange market, it almost had no impact on the mid-term price development of bitcoin, considering the fact that bitcoin has already fully recovered from the Chinese government’s bitcoin exchange ban and demonstrated resilience toward market manipulation.
“Bitcoin price is resilient because its value doesn’t come from government acceptance or regulation. Its value comes from failure of fiat money system,” said BTCC CEO Bobby Lee.
Featured image from Shutterstock.