China Returns To Bitcoin Platform Localbitcoins As ‘FUD’ Excites Markets

Localbitcoins has seen new record high volumes as traders react to uncertainty from China.
Localbitcoins has seen new record high volumes as traders react to uncertainty from China.

Bitcoin trading platform Localbitcoins has posted new all-time highs as China’s looming trading ban leads traders to seek alternatives.

Data from Coin Dance shows a new weekly high for global volumes on Localbitcoins, with $53.4 mln dollars changing hands in the week ending Sept. 9.

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The platform’s Chinese market saw a major uptick from the week prior, following two regulatory warnings about a ban on ICOs and Bitcoin-to-fiat trading.

Volumes shot up 50 percent last to reach 32.4 mln yuan, the highest levels since mid-June.

Uncertainty is the factor dictating trading behavior across cryptocurrency markets Monday, as details of China’s intentions remain sketchy.

Rumors of a full ban on fiat exchange for cryptocurrency appeared in local newspaper Caixin Friday, yet official sources have yet to cement claims that China’s exchange will have to close for the second time this year.

Nonetheless, investors across the world appeared to react to the sudden volatility in Bitcoin and altcoins, with overall trading higher than ever not just for Localbitcoins but for fellow platform Paxful.

$8.7 mln was handled in the seven days to Sept. 9, while the third resource tracked by Coin Dance, Bisq, curiously posted only average volumes.

Localbitcoins’ previous highs came earlier this year after China threatened and subsequently enforced a ban on Bitcoin exchanges, lasting several months.