Earlier this month, bitcoin had one of its best weeks since August 2014, as the price of bitcoin peaked US$500 in international exchanges, including OKCoin, BTCC, BitFinex and Bitstamp.
However, bitcoin price immediately began to plummet, falling back down to US$356 at today’s low, recording a nearly 30% decline since its peak on November 5. As a result, the trading volume of prominent Chinese bitcoin exchanges including OKCoin have almost halved over the past week.
OKCoin, the world’s largest bitcoin exchange (by trading volume) suspects that the slowdown in bitcoin trading activity in the Chinese bitcoin market is caused by the dwindling hype of various ponzi schemes that emerged over the past few weeks.
According to OKCoin Corporate Development Associate Alfred Lin, an increasing number of ponzi schemes have begun to target bitcoin investors and traders in China, fueling most of the bitcoin activity in the market.
“Recently there’s been a ponzi scheme using bitcoin specifically targeting Chinese people. This has fueled a lot of the uptick in bitcoin activity. I suspect the hype of the Ponzi scheme might have been dwindled down causing a slowdown in bitcoin trading activity,” Lin told newsBTC in an exclusive interview.
Financial experts and Chinese bitcoin exchanges including BTCC