On May 10, data from Huobi, a leading Bitcoin trading platform, revealed that China's Bitcoin price exceeded ¥10,000 at 1:30 AM, with a peak 5% increase within two hours—setting a new historic high for domestic Bitcoin valuations.
Sharp Decline in Trading Volume
Despite the price surge, Bitcoin trading activity in China remains subdued. Recent data shows:
- China accounted for only 10.5% of global Bitcoin trading volume last week.
- Huobi's trading volume on May 9 was 13,000 BTC, 40% lower than the previous peak and merely 0.3% of the volume recorded during the January 5 peak.
- Daily trading volume on Huobi now represents less than 1% of pre-regulation levels.
Analysts attribute this trend to growing market rationality under intensified regulatory scrutiny.
Key Market Shifts
- Price Discrepancy: Domestic prices lag behind international markets by over ¥2,000.
- Global Ranking: China dropped from the top global trading position to third place, trailing USD and JPY markets.
Overseas Markets Lead the Rally
The recent price surge was driven by international markets:
| Platform | Peak Price (Converted to CNY) | Premium Over China |
|---|---|---|
| Bitfinex (USD) | ¥12,417 | ¥2,417 |
| BitFlyer (JPY) | ¥12,948 | ¥2,948 |
| Bithumb (KRW) | ¥14,090 | ¥4,090 |
👉 Why are international Bitcoin prices higher?
Huobi analysts highlight two major catalysts:
- Japan's regulatory shift: Since April 1, 260,000+ Japanese merchants accept Bitcoin payments.
- Upcoming Bitcoin ETF review: The SEC's May 10 reassessment of a Bitcoin ETF could legitimize Bitcoin as a mainstream investment.
Regulatory Measures Take Effect
China's crackdown has fundamentally altered market dynamics:
- January 2023: The PBOC inspected exchanges in Beijing/Shanghai, identifying violations like unapproved margin trading.
New Requirements: Exchanges must now implement:
- Anti-money laundering (AML) protocols
- Terror financing prevention systems
- Customer identification procedures
Major platforms including BTC China, Huobi, and OKX suspended margin services and Bitcoin/Litecoin withdrawals—a restriction still in place after three months.
FAQ Section
Q: Why did China's Bitcoin trading volume drop?
A: Strict PBOC regulations banned margin trading and enforced AML measures, reducing speculative activity.
Q: How long will withdrawal suspensions last?
A: Exchanges initially projected one month, but the freeze has extended beyond three months with no announced end date.
Q: What's driving international Bitcoin prices?
A: Japan's pro-Bitcoin laws and potential ETF approvals in the U.S. are key factors.