18 hours 35 minutes ▪ 3 minutes read ▪ Written by Michael A.
Although the Chinese government banned crypto trading in 2021, the Chinese have not completely abandoned cryptocurrencies. Despite their unofficial status in China, they continue to manipulate this technology by circumventing capital controls and leveraging foreign platforms. Recently, the frenzy surrounding domestic stocks has affected USDT, indicating a shift in interest in the Chinese stock market.
Fluctuations in demand for USDT
Despite the observed decline, the impact of cryptocurrencies, especially USDT, remains undeniable. Since the end of September, the price of this stablecoin, Tether News, which is often exchanged for dollars, has been below parity. why? The impressive rise in Chinese stocks has led to panic selling, with some investors looking to sell USDT and return to domestic stocks.
“We have observed a correlation between the demand for A shares and the selling of Tether,” explains Annabel Huang, partner at Amber Group.
At the same time, China’s peer-to-peer market rates also highlight this pressure. Traders are offering prices between 6.78 and 6.98 yuan per USDT, while the offshore yuan is trading at 7.07 yuan per dollar.
6.78 to 6.98 yuan per 1 USDT on certain platforms. Despite everything, Tether still has the upper hand in trading. Despite increased pressure on the renminbi, USDT is still used.
Crypto, resilience despite everything
Despite the ban, the black market for cryptocurrencies in China continues. Enthusiasm for stable cryptocurrencies, especially stablecoin USDT, proves that Chinese investors are not ready to abandon their digital strategies.
Indeed, Chinese brokers are attracting significant capital flows, indicating that demand for digital assets remains strong. Large institutional investors, primarily like MNNC Group, are allocating some of their portfolios to Chinese stocks, but they are not turning their backs on cryptocurrencies completely.
In this regard, it is difficult to accurately measure the extent of exchange volatility, but the numbers speak for themselves. The Shanghai index rose 21% in September and rose 8% as soon as trading resumed in October.
However, despite Xi Jinping’s crackdown, China’s crypto black market is thriving, with revenues estimated at $23.7 billion in 2024.
Get the most out of your Cointribune experience with the Read to Earn program! Earn points every time you read an article and get access to exclusive benefits. Sign up now and get rewards.
Micaiah A.
Blockchain and virtual currency revolution! Affect the fragile social situation, have a serious impact on the economic society, and solve the problems of your choice.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
