Over the past several days, financiers have actually experienced sudden gains in volume and severe price volatility for litecoin. In the recently litecoin has gained over 79 percent against bitcoin, 88 percent against the U.S. dollar and 90 percent against the euro and the yuan.
Much of the quick boost in volume around litecoin trading was coming from Chinese markets, which is cause for concern at Huobi, a significant digital currency exchange based in Beijing.
According to Arthur Hayes, the Cofounder and CTO of BitMEX, a litecoin ponzi scheme may have caused both bitcoin price and volume boosts on Chinese digital currencies exchanges in the last couple of days.
Huobi CEO Leon Li informed Bitcoin Publication that the exchange had taken steps in the wake of the so-called “pump and dump” litecoin scheme.
“We did experience a difficult Friday in Beijing since of LTC price volatility. Those promoters are possibly extremely dangerous, so we post danger warning on Huobi and will certainly start danger exposing mechanism to all our users. An English notification was posted on BitVC.”
Li acknowledged there were likewise other elements at play, stating “The current price volatility of litecoin is undoubtedly among the causes of the price increase of bitcoin. Since the LTC, BTC price is getting better from the most affordable 1:200 to the current 1:30 aprox. Many users opted to offer litecoin and buy bitcoin, which is likewise one of the sources where bitcoin acquiring power originates from.”
Provided this week’s chaos in the stock exchange in China, it would be appealing to assume that the current increase in bitcoin price and trading volume on Chinese exchanges is a direct result of this alone.
Chinese exchanges validate that bitcoin trading volume is growing
Jack Liu, Head of International at OKCoin informed Bitcoin Magazine, “As the biggest exchange in China, we have actually seen a near 50 % boost in volume in the past month.”
All three exchanges said the stock market closure had little to do with the boost in volume as this trend started 3 weeks to a month ago.
Greg Wolfson, Director of Business Advancement for BTCChina, informed Bitcoin Publication “We’ve seen a continual increase in trading volume over the last 3 weeks, approximately coinciding with the Greek referendum. In part, this is driven by speculators and investors looking for safe house, because worldwide macro occasions are an essential force in the market right now …
“In fact, there is no financial crisis in China. There is a sharp correction in the stock exchange, but bitcoin did not play any function in that. The present value of all the bitcoins in flow internationally is unimportant as compared to the capitalization of Chinese stock markets. The correction in the stock markets is perceived as resulting from excessive margin lending and the entry of many newbie investors. It’s a traditional stock exchange bubble. There is no perception that bitcoin played any role and no evidence to support that.”
Huobi CEO Li put the current scenario in viewpoint stating it still doesn’t compare with the bitcoin price spike of late 2013 and early 2014.
“The price of bitcoin has actually experienced an increase to some level. And the exchange volume has likewise become more active. However this can not be acknowledged as substantial increases or modifications. The volume of bitcoin users has increased about twice than in duration of decline, however there’s still a space if we compare it to the peak time at the end of 2013 and the beginning of 2014.”
There is some speculation that the upcoming “halving” of litecoin, due in late August, might be driving sales to some extent but insufficient to describe the abrupt increases in the recently.
With continuing unpredictability in Greece, anxiety over the recent spam attack on bitcoin, and an unfolding litecoin ponzi plan, the price of bitcoin may be at the center of an almost “best storm”.
Image GoShow / CC BY-SA 3.0
The post Chinese Bitcoin Exchanges: Litecoin Price Volatility Driving Bitcoin Gains, Not Chinese Stock exchange appeared initially on Bitcoin Publication.