Billions Moved Out of China in Bitcoin, Says China-based Blockchain Analytics Firm

According to a new report by China-based blockchain analytics firm Peckshield, close to $20 billion in Bitcoin has been moved out of China.

The company said:

In 2020, the total capital outflow from Chinese exchanges to foreign exchanges reached $17.5 billion, up from $11.4 billion in 2019, with this sum exceeding 1.5% of China’s three trillion foreign reserves

The firm conceded that the actual sum of the outflow may be higher has they only track a limited number of exchanges used by Chinese citizens. The firms tracked included Token [?], OKEx, Bitfinex, Gate.io, ZB, Kucoin, Bibox, Binance, Bitstamp, Bittrex, Kraken, as well as more mainstream exchanges like Coincheck [?], Coinbase, Poloniex, Bitflyer and Upbit.

The report added that:

The number of bitcoins that flowed from domestic to foreign countries was highest in March this year, reaching 172,115.39 bitcoin.

On December 12, 2020, the value of Bitcoin flowing from domestic to foreign countries reached its highest dollar value in the whole year, exceeding $2.5 billion.

Government can’t stop Bitcoin transfers

For a long time, the Chinese government have cracked down on methods used for capital flights. However, for a while now, the Chinese Yuan has been appreciating considerably against the Dollar. This might suggest they have loosened up.

Chinese citizens have remained attracted to Bitcoin. Since the rise of Bitcoin’s price, it seems that the interest keeps growing. Already, about 65% of all Bitcoin miners are based in China.

What this report shows is that the Chinese market is pivotal to the movement of Bitcoin price. From the transaction volume, they are doing so to the tune of billions of dollars.

However, the high transfer out of the country suggests that there are pipelines moving billions a month in Bitcoin. What this shows is that the Chinese government have not been able to stop the crypto despite their crackdown.

Apart from the capital flight using cryptocurrencies, the report also goes through the major crypto scams over the past three years.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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source https://www.earnforex.com/commodities/billions-moved-out-of-china-in-bitcoin-says-china-based-blockchain-analytics-firm/