Bitcoin has retraced over half its losses from last week's tumble, rallying back above $2450 oveenight after news that China's three largest bitcoin exchanges are allowing customers to withdraw bitcoins from their accounts.
As CoinTelegraph reports, on May 31, local Chinese Bitcoin and cryptocurrency news source cnLedger reported that OKCoin China resumed withdrawals for traders.
BREAKING: We received report that OKCoin (CN site) resumed withdraws!— cnLedger (@cnLedger) May 31, 2017
W/d limit based on vip level, starting from 10BTC/200LTC/1000ETH daily
OKCoin is the largest Bitcoin exchange in China which processes 31 percent of trades within the Chinese Bitcoin exchange market. In February, OKCoin and Huobi, the two largest Bitcoin exchanges in China, were flagged by the People’s Bank of China for operating a trading platform without appropriate Know Your Customer (KYC) and Anti-Money Laundering (AML) systems.
And the reaction is positive...
The OKCoin trading platform’s withdrawal resumption acting as a catalyst to trigger the interest and demand for Bitcoin from local investors. Currently, Bitcoin is being traded in China at a premium rate, which the global market hasn’t seen since last year.
The global average Bitcoin price at the time of reporting is $2,300 and traders within the Chinese Bitcoin exchange market is trading Bitcoin at over $2,340, around $50 higher than that of the US. In comparison to South Korea, which is demonstrating a $400 premium, the premium rate of the Chinese market is significantly small. However, the recovery of the Chinese Bitcoin exchange market is a positive sign of growth and recovery for the global market.
Due to extensive mainstream media coverage of Bitcoin as digital gold in China, the demand for Bitcoin within the country and amongst local traders has already been on the rise.
People's Daily (China's biggest newspaper): Bitcoin becomes "digital gold". High risk, high expected yield. BU/SegWit may soon help it scale pic.twitter.com/RODqhnJlPa— cnLedger (@cnLedger) May 26, 2017
As CoinTelegraph concludes, the resumption of withdrawals by OKCoin will further fuel the growth of the Bitcoin market in China and when the People’s Bank of China completes the final regulatory framework on Bitcoin by this month, the Chinese market will stabilize and Bitcoin price will likely increase as a result.