The effect of fees on the Chinese exchanges in a single chart

[alyssa85]

The Chinese exchanges applied trading fees of 0.2% for the first time on January 24th 2017. You can see the effect in the following chart:

[Red-Apple]

it wasn't just the 0.2% fee but a lot have changed over there. their margin trading has stopped, and so much of their fake operations with fake volume has stopped because of the pressure of PBOC.

p.s. what website is this chart from? (by the way thanks for sharing, i was actually looking for something like this)

[alyssa85]

Hi Red-Apple

The image is from the following site:

https://data.bitcoinity.org/markets/volume/30d?c=e&t=bar

Play around with the options on the left side, plus the times at the top. At the bottom you have the option to change it from bars to expanded area charts. Once you have the chart you want, if you hover your mouse over it, you can see the breakdown.

[MatDerKater]

Even more dramatic if you factor Huobi into the equation.

[pitham1]

Ha ha. Now we will find out what the actual volumes in the Chinese exchanges are. But I don't see any direct correlation between Bitcoin's price and volumes. If anything, it will assure traders that there is sufficient market depth.

[sir.humus]

Maybe the charts are up because of the holidays.
It is the Lunar new year, and a lot of people are not working, and have the time to play with tradings.
It's better if we'll wait a week or more and then see the effect.
I don't think you can conclude anything from this chart alone.
But it will be interesting to follow up...

[Qunenin]

Ha ha. Now we will find out what the actual volumes in the Chinese exchanges are. But I don't see any direct correlation between Bitcoin's price and volumes. If anything, it will assure traders that there is sufficient market depth.

I think it is good for bitcoin itself. With no fake volumes, we are sure that what the current price of bitcoin is the real price and there is no danger of manipulating price through fake volumes. I like the introduction of fee in Chinese exchanges as it is on other exchanges making competition even.

[alyssa85]

Ha ha. Now we will find out what the actual volumes in the Chinese exchanges are. But I don't see any direct correlation between Bitcoin's price and volumes. If anything, it will assure traders that there is sufficient market depth.

I think it is good for bitcoin itself. With no fake volumes, we are sure that what the current price of bitcoin is the real price and there is no danger of manipulating price through fake volumes. I like the introduction of fee in Chinese exchanges as it is on other exchanges making competition even.

It will stop all those press reports saying "Bitcoin is controlled by China, they have 90% of the trading volume". It really put people off adopting it.

[European Central Bank]

I think it's gonna be a major plus for any etf considerations. The timing is perfect.

I still think it's a long shot but one of the major concerns has just been wiped out.

[Denker]

I think it's gonna be a major plus for any etf considerations. The timing is perfect.

I still think it's a long shot but one of the major concerns has just been wiped out.

I had this thought as well.
For a possible ETF approval this can not be bad, however I still see the chance very small at the moment.

http://data.bitcoinity.org/markets/volume/24h?c=c&r=hour&t=bar

As we can see in terms of currency, China (CNY) is not dominating the market as some have thought.
However the CNY's portion of the cake still is 31%. € with ~12%.
USD leading with over 48% market share! Therefore these exchanges are the ones we need to have an eye on!

[European Central Bank]

I think it's gonna be a major plus for any etf considerations. The timing is perfect.

I still think it's a long shot but one of the major concerns has just been wiped out.

I had this thought as well.
For a possible ETF approval this can not be bad, however I still see the chance very small at the moment.

http://data.bitcoinity.org/markets/volume/24h?c=c&r=hour&t=bar

As we can see in terms of currency, China (CNY) is not dominating the market as some have thought.
However the CNY's portion of the cake still is 31%. € with ~12%.
USD leading with over 48% market share! Therefore these exchanges are the ones we need to have an eye on!

A decent slice of the pie is fine, at least it's realistic now. It's always gonna be international but now it's not ludicrously and shamelessly distorted.

[BrewMaster]

...at least it's realistic now. ...

this is the most important part of it all in my opinion.
right now the volume they are reporting has dropped down so much it is the same as other exchanges we are all using.
and this in the long run will put a stop to FUDsters using higher fake volume of Chinese to say they are controlling bitcoin.

[wry]

+1 BrewMaster  Totally agree that this is a change for the better. 

Everyone knew the Chinese volumes were inflated but it was hard to estimate by how much, now we know there was A LOT of hot air.  This will help price discovery and hopefully make bitcoin even more legit in people's eyes.

[craked5]

...at least it's realistic now. ...

this is the most important part of it all in my opinion.
right now the volume they are reporting has dropped down so much it is the same as other exchanges we are all using.
and this in the long run will put a stop to FUDsters using higher fake volume of Chinese to say they are controlling bitcoin.

Yup! Better to see only real transactions!!!

Just a slight question in my mind though, does anyone have the average global tx?
Because if this didn't fall too much it also means that lots of investors were only redirected from Chinese exchanges to others.
And that would be a very good point in the decentralization idea ^^

[Catmony]

Now we can see what is the real trading volume chinese platform have, they got busted by PBOC and they are quite lucky not to got shut down by authority for luring traders with fake volume.

[pinkflower]

If the Peoples Bank of China have ordered BTC exchanges to stop 0% fees market making and also made them stop offering leveraged or margin trading then that also means that Chinese exchanges have lost some of their profit generators. Will this then make the exchange business very competitive in China? Maybe we will see 1 or 2 exchanges in China close down because of lack of revenue.

[Wolf Rainer]

This is very positive, finally the end of fake volume and manipulation. It also represents a unique oportunity for the occidental exchanges to become relevant.

[amacar2]

Now people will stop claiming chinese are controlling bitcoin, majority of bitcoin miners are in china due to low  electricity cost however after implementation of trading fee, now we can see how much bitcoin are being traded in reality by chinese. It looks like they don't have more volume than other trading platform like bitfinex  

[LoyceV]

I have my own theory about this. Bear with me:
First: I love it! Having no fees on trade was a weird thing. This graph clearly shows how China's market share dropped from 90% to about 30%.
In my opinion this means Bitcoin is maturing. Long term this will lead to a more stable situation. Bitcoin price dropped a bit when China announced stricter rules. If it can recover with the stricter rules, it comes out stronger.

I now see 2 main problems left for Bitcoin:
1. very few people own a lot, which gives them the power to influence the price on the short-term
2. full blocks don't allow for growth in transaction volume.

[Febo]

It seems Chinese exchanges volume is getting under 25%.   
I also dont know what was actually reason behind those huge volumes in past beside that some exchanges wanted to look super big to attract more traders.