The crypto market has plummeted since Bitcoin hit an all-time high (ATH) of $ 69,000 on November 10, largely due to the dominance of Asian investors.

“There’s a lot of pressure to sell from China right now,” said Samson Mow, chief strategy officer at blockchain company Blockstream.

Mow said the market took a shock when crypto-related companies fled China to comply with the new Bitcoin ban.

As an example, he cited Binance and Huobi Global, two of the top exchanges that plan to close all peer-to-peer (P2P) services in China in the next ten days.

Both Binance and Huobi Global are very popular with Chinese investors, but they stopped registering new accounts after the ban was announced in September.

“So people are closing positions before the peer-to-peer applications are gone,” emphasized Mow, who is also the lead architect of Bitcoin bonds in El Salvador. “It also coincides with investors needing cash to prepare for the Lunar New Year in early February.”

Bitcoin price drops after being held back by China

China, one of the largest Bitcoin markets in the world, issued a comprehensive ban on the mining and trading of cryptocurrencies in September.

Since then, a number of bitcoin exchanges and crypto service providers have severed business relationships with Chinese users in order to comply with local regulations.

While China officially banned cryptocurrency trading in 2019, users continue to operate through foreign platforms.

However, there was a significant raid that year. The September ban made it clear that those who engage in crypto-related activities are criminals and will be prosecuted.

The authorities also warned that overseas exchanges that offer Chinese citizens similar services over the Internet are being investigated.

When the crypto market crashed during the crackdown, Bitcoin has traded between $ 42,000 and $ 54,000 in the past few weeks.

Analysts expect the price to be between $ 100,000 and $ 135,000 by the end of December.

Cash flow from the Chinese market is returning to cryptocurrencies

Samson Mow believes that selling pressure from China will ease over the next year, which will lead to a rebound in prices.

He also pointed out that the data shows that this is correct, as unprecedented sales in the region tends to depress BTC prices during the Asian session.

after a report of the new blockchain analytics firm Glassnode, that selling pressure increased in November and December.

The report says that market trading is typically lower during Asian business hours than during European or US business hours – suggesting that Asian investors are the driving force behind selling pressure.

To arrive at this conclusion, Glassnode compared the daily Bitcoin price to the price a month ago, taking into account large monthly price changes at different times of the day.

Mow said the bulk of investment from China appears to have left the crypto market but will return at some point.

“It is not that much money from the Chinese side that is leaving the market, but at the moment there is uncertainty about trading platforms and the accessibility of trading. People are selling and waiting to enter the RMB (Chinese Yuan) market. ”

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