Despite the Chinese government's crackdown on ICOs and crypto-currencies, local traders continue to invest in bitcoin. As recently reported by CryptoCoinsNews, the price of Bitcoin reached a record high of $ 5,920. Experts, including Mike Novogratz, predicted that the price of bitcoin would rise further in the medium term. Many investors are now turning more and more towards cryptocurrencies.
When the price of Bitcoin exceeded the $ 5,800 mark, Chinese investors rushed to invest in this digital currency, despite China's ban on cryptocurrency trading.
Strong demand for Bitcoins after rising prices
On October 13, the price of bitcoin was traded at over $ 6,013 in the Chinese market. These transactions were facilitated by Huobi and OKCoin. Moreover, local investors have started to flock since the announcement of this increase. While major markets such as Japan, the United States and South Korea offered prices around $ 5,800, Chinese investors bought the virtual currency at more than $ 6,000.
The South Korean market has seen a much larger increase until the end of 2016, compared to other markets such as the United States, due to the limited amount of bitcoins. At the time, Korbit and Coinone dominated the South Korean cryptocurrency market.
South Korea, the 3rd largest Bitcoin market in the world
Unlike China, where mining transactions benefit from a state subsidy, the South Korean market does not benefit from such mining activity. Thus, Etherum and Bitcoin are imported from abroad, which influences the price.
This market has thus experienced significant growth in recent years. Due to the closure of major cryptocurrency traders in China, the amount of virtual currency in the country is limited.