Bitcoin expected to rise as Chinese exchanges resume withdrawals

As you well know, bitcoin is the most successful crypto currency today. Trading bitcoin is always entertaining and will always keep you on your toes thanks to its unmatched volatility. So, if your broker offers bitcoin as an asset, this news piece can help you further your trading career.

After a four-month withdrawal freeze, major Chinese exchanges have resumed their withdrawal services. The withdrawal freeze was as a result of heightened scrutiny by the People’s Bank of China. OkCoin and Huobi which are the biggest exchanges in China were flagged by the Central Bank for operating without appropriate Anti-money Laundering Systems and Know Your Customer (KYC) systems. Even though withdrawals were restricted, traders could still buy and sell bitcoin but they could not transfer or download them.

In a statement on Thursday, the Chief executive of BTCChina, Bobby Lee acknowledged that his exchange had resumed withdrawals after upgrading anti-money laundering systems. Huobi also issued a statement saying they would resume normal withdrawals services on Thursday. A reputable industry news outlet also reported OkCoin to have resumed withdrawals.

This latest development is likely to make bitcoin price soar even higher from its current near record-breaking price level.

For a period of three months, From February to May, bitcoin has been trading at a substantially lower level on the Chinese market exchange compared to its counterparts. Bitcoin traded at approximately 25 percent lower than other exchanges. This is mainly because traders couldn’t withdraw bitcoin held on exchanges which then resulted in a decline in bitcoin after majority of traders migrated to over-the-counter exchanges such as local bitcoins.

However, at the time of writing, Bitcoin is already trading at a premium market price with the prevailing price level exceeding the average global price by $50.The Chinese premium market price is however small compared to the $400 South Korea’s premium where bitcoin is being traded at $2700 compared to $2300 global average market price.

However, the surge in bitcoin price from 25 percent lower to trade at a $50 premium is a clear indication of the underlying growth and possible recovery of the global market.

What to expect of the Bitcoin price?

According to a section of analysts, Bitcoin price will continue rising .A consultant at Altus consulting, Adam Davies, forecasted the market price of bitcoin to hit the $3,000 mark by year end.Investing.com predicts bitcoin to trade between $2295 and $2644, with a forecast of 11.84% change in either direction.

Whether the forecast materializes or not is subject to a string of variables including the political quagmire in the United States.

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