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Bitcoin [BTC] buyers using OTC platforms in China are paying extra for Tether [USDT]




Bitcoin [BTC] buyers using OTC platforms in China are paying extra for Tether [USDT]
Source: Pixabay

After the recent market rally led by Bitcoin, Chinese crypto traders are making a comeback into the space. However, investors are having to pay an additional 3% on over-the-counter or OTC platforms [like Huobi] for the stablecoin Tether [USDT] to avoid a blanket ban on crypto-trading.

The premium paid by investors and traders in the region has become increasingly widespread since the prohibition of virtual currency trading.

A Chinese news outlet, cnLedger, revealed on Twitter the cause of USDT premiums surging post the ICO and cryptocurrency trading ban in 2017. It revealed that the most “convenient way” to acquire a digital asset in the country was to buy stablecoins like USDT [1 USDT = 7 CNY] via OTC or over-the-counter forums. Following the purchase, users can convert it to a desired digital coin in any cryptocurrency exchange, cnLedger continued.

The entire crypto market was green after being supported by the Bitcoin rally. This prompted Chinese investors to return to the space and trade, in the middle of a regulatory clampdown in the country. Commenting on the market, cnLedger tweeted,

“Chinese markets reveal strong buys. OTC (Over-The-Counter) trades, the almost only way to buy bitcoin with fiat in China, showing considerable $ premium (1 USDT = 7 CNY) over the official rate of 1 USD = 6.7 CNY.”

The Chinese crypto-dedicated news service also revealed that Bitcoin was the most searched keyword on Baidu [Google’s equivalent in China]. A Chinese court issued a ruling in late 2018 stating that owning and transferring Bitcoin in the country did not fall under the prohibitory law.

According to Coinlib, money flow from Chinese Yuan [CNY] to Bitcoin [BTC] was $124.45 million and $71.08 million for Ethereum [ETH], over the past 24 hours.

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Has XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?




Hash XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?
Source: Unsplash

Opinion: Bitcoin, the first cryptocurrency, has had over ten years to grow. However, other altcoins did not have the liberty, due to which Bitcoin exerts its dominance over almost all altcoins in the ecosystem, be it Ethereum, XRP, or Cardano. The price of altcoins generally tends to rise if Bitcoin’s price surges rapidly. The same can be said about the downtrend as well, which is why altcoins are said to be coupled with Bitcoin.

However, the recent buzz on crypto-twitter is that XRP is on the verge of decoupling from Bitcoin. A Twitter user @XRPMOONSHINE tweeted:


In a very general sense, the comparison of the price change of XRP and BTC gives a crude understanding of whether the prices have actually decoupled or not. Hence, the daily chart attached below shows the price of BTC and XRP against the US Dollar and extends from August 2018 to April 2019. The price of XRP seems to be following a lag from the price of BTC and do not necessarily mean that it has decoupled.

However, there are timeframes where the price of XRP has moved completely unrelated to that of Bitcoin. For example, the meteoric rise of XRP from September 18 to 22 was far higher than the price pump of BTC over the similar timeframe; but the drop of XRP from November 18 to December 16 was exactly the same as that of BTC’s.

Furthermore, XRPMOONSHINE suggested that XRP price was being manipulated. He tweeted:

“It is being manipulated to keep it from rising. For example look at XRP/BTC pair. Keeping it under the down sloping resistance from .80 in September. Thats what I mean by Suppressed, Although im expecting a fairly large move to the upside before 4/24/19.”

The “idea” of the price of XRP being manipulated is not unpopular within the XRP ecosystem as Peter Brandt, a famed trader, suggested the same in one of his tweets.

Brandt tweeted:


XRP may have started to decouple from Bitcoin, but it surely hasn’t decoupled completely. The notion that XRP is being manipulated to keep its price below certain levels can also not be confirmed without proof.

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