Bitcoin’s Price Rises as “Big Three” Chinese Exchanges Resume Withdrawals
After reaching an all-time high of $2760 on May 25th, Bitcoin’s price has been struggling to recover from the crash that followed. The price touched a low of $1850 and since has been slowly rising. The recent news of Chinese Bitcoin exchanges resuming withdrawals seems to have propelled the price upwards almost $100 in a matter of hours.
Huobi was the last exchange to finally enable withdrawals after months of deliberation with the PBOC. This news mark the last of the “Big Three” exchanges returning to business – OkCoin, Huobi, and BTCC.
Depending on the exchange, users can withdraw either 10, 20, or 50 BTC per day. That is a substantial amount even for Bitcoin whales. It seems that the PBOC has finally settled with the exchanges and ultimately green-lighted them to continue doing business as usual. One interesting fact to keep in mind, as mentioned by kris33 on reddit:
Weird withdrawal limits. You can withdraw ~$23,000 worth of BTC, and/or ~$230,000 worth of ETH, and/or ~$5000 worth of LTC.
It is still early to tell whether that was an intentional decision or whether or not it was a mistake. By allowing users to withdraw almost 10X more in Ethereum, the exchanges are further pumping the price of ETH because those that want to withdraw their coins asap will have to buy Ethereum and withdraw that way. It is almost ironic that after all the noise that the PBOC made regarding regulating exchanges, they let such uneven limits to be implemented.
As Bitcoin’s price is climbing past $2400 it is hard to tell whether the recent drop was a bull trap. The next resistance level is $2500 as it is both a technical and an emotional barrier. If Bitcoin’s price can pass the $2500 level and turn it into support, we may see further price increases absent any negative news.
Remember the SEC decision which is still pending regarding Bitcoin’s ETF petition for review? The agency still hasn’t publicly announced it’s second ruling regarding the currency. In the likely scenario that the SEC will once again deny Bitcoin’s ETF, it will be interesting to see how much if at all Bitcoin’s price will be affected. Two months ago when the SEC first ruled on Bitcoin’s ETF, the price dropped over 30% and caused quite a panic crash. This time it might be different as all the focus is on the Eastern countries furthering the crypto’s adoptions.
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