China's economy hits 25-year low, but BTCC sees peak in Bitcoin trading volume

BTCC, an exchange with one of the largest market shares in the world, recently reported that it has seen unusually high trading volumes following the recent plunge in global stock and commodity values.

“Although the trading volume in the past few days has not reached the peak of 2011, we expect to see higher trading volumes in the future as Bitcoin’s popularity among all assets continues to rise,” BTCC CEO Bobby Lee told Bitcoin Magazine.

According to trading data provided by BTCC, the exchange processed more than 46,880 bitcoins in the past seven days and settled more than $1.83 million, equivalent to about $391 per bitcoin.

But Lee told Bitcoin Magazine that the growing demand for Bitcoin from Chinese investors is due to disappointing performance of all asset classes and commodities around the world. He predicts that demand for Bitcoin will continue to rise in the coming weeks due to the economic downturn in the United States, Southeast Asia and China.

“The recent surge in trading volume cannot be traced back to any single factor. Rather, it is a confluence of global factors that are driving demand for Bitcoin, including the recent decline in global stock and commodity values,” he explained.

The Chinese government announced that economic growth fell to 6.9% in 2015, while one of the country's largest stock markets issued a collapse warning, which may be a reason for the surge in demand for Bitcoin in China.

As China's economic growth hit a 25-year low, President Xi Jinping formally asked relevant officials to maintain short-term growth.

“The 2015 growth rate report did not reassure the public about the true drivers of China’s economic growth, but instead raised many questions,” said Eswar Prasad, a professor of trade policy at Cornell University and former director of the International Monetary Fund’s China division, in an interview.

Marc Faber, a well-known Swiss investor who has spent his entire career discussing the value trends of precious metals such as gold, also expressed his positive views on Bitcoin in a recent interview.

“When discussing the bleak outlook for 2016, I have to mention that in 2015, all asset classes performed poorly, except for those who held Bitcoin,” said Faber.

Although it is difficult to predict the price and trading volume of Bitcoin in China, Bitcoin experts and exchanges are optimistic about the rise of Bitcoin and expect the trading volume to continue to grow in the coming months. Since Mike Hearn left the industry, the price of Bitcoin on most major Bitcoin exchanges has also improved to a certain extent, performing strongly against the backdrop of global economic stability and economic recession.

Bitcoin Magazine: https://bitcoinmagazine.com/articles/btcc-reports-high-bitcoin-transaction-volumes-as-china-s-economic-growth-hits-year-low-1453914793