[2017-02-23] Bitcoin Transaction Volumes Playing Increased Role Amid China Shake

[rytyr]

Bitcoin Transaction Volumes Playing Increased Role Amid China Shakeup
“If you had told most people that the vast majority of Chinese trading volumes were going to disappear and Bitcoin was going to hold over $1,000, people would not have believed you just a month-and-a-half ago,” ARK blockchain products lead Chris Burniske tells Bitcoin.com. “That bitcoin’s value is potentially more supported by its transacting volume than its trading volume is counter to the narrative that bitcoin is supported mostly by speculation.”
Indeed, it appears the Bitcoin market is adjusting to new regulations from the People’s Bank of China (PBoC) regarding areas like trading fees, margin restrictions and anti-money laundering (AML) and know your customer (KYC) policies.
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[Papa Bear]

There were zero fees and good liquidity. Trying to shave off small gains via algorithmic trading doesn’t necessarily provide much support to Bitcoin’s value-proposition, so losing that trading volume is not necessarily that important for Bitcoin in the long-term.