Do you wonder why the Bitcoin price suddenly have increased this weekend? Take a look at the graph below of the Huobi trading volume. They have an insane trading volume now with more than 200 Bitcoins being traded every minute. They beat both Mt. Gox, Bitstamp and BTC China.
So why has Huobi surpassed BTC China in trading volume? It has been said that current exchanges in China have used their CEO’s personal bank accounts to start it off. BTC China’s CEO Bobby Lee has been able to put up corporate bank accounts because of the risk involving his own personal bank account.While Thus Li Lin, CEO of Huobi, is still operating Huobi transfers under his personal bank accounts among multiple banks in China. This allows Thus Li Lin to make minimal transfers between different banks for withdrawal and deposits of his customers. Giving faster deposit and withdrawal time.
However, he is taking a great risk. It is said that Bobby Lee moved to corporate bank accounts due to an expectation of governmental crack down on personal bank accounts being used for Bitcoin trading. Whether this will happen or not is yet to see.
Huobi has now surpassed other Bitcoin exchanges in China, even though China is trying to limit the Bitcoin adventure.
How long will the push by Huobi continue?
I’m not sure. There are many different factors now pushing the Bitcoin price. If China decides to crack down on Huobi and Thus Li Lin’s operation, we would expect a crash probably worse than the crash we witnessed this late fall. If there are no negative news and comments by either the US or Chinese Government the coming week we can expect a new price range between 1000 to 1100 USD.
I would be very careful this week and stay updated on the latest news regarding any actions from any of the big governments.
Read the analysis of Gordon Geeko here for the coming week the way he sees it.