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Bitcoin Market is Dominated by China

Finance Investment Trading

A structural change in bitcoin market occurred over the last five years with the US dollar almost completely replaced by Chinese yuan in bitcoin trading. Yuan started playing the dominant role as most of the bitcoin transactions are taking place on the exchanges located in China. The following graph illustrates the change over time: The …

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China May Restrict Bitcoin Trading

Finance Investment Trading

China may introduce tighter regulations on bitcoin trading, that will affect and possibly restrict operation the major Chinese bitcoin exchanges. Chinese bitcoin exchanges are responsible for overwhelming majority of all bitcoin transactions. The exact share of transaction is unknown: the reported number of 95% is biased and include ‘fake’ transactions (exchange clients buying bitcoins from …

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Oil Prices in 2017

Finance Investment Trading

Oil prices may not be posed to rise in 2017. The effect of reduction of oil production by OPEC countries and Russia and collapse in China’s oil production may be mitigated by growing oil production in non-OPEC countries such as Libya, Iran, Iraq and Algeria, as well as the increase in US shale oil output. …

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Strong Dollar May Be Dangerous to the Global Economy

Finance Investment Trading

Strong dollar may cause financial crises or slowdown in some developing countries, including Mexico and China. Dollar may strengthen in 2017 due to new US economic policies, resulting in short term economic growth, as well as possible increase in Fed interest rates. Fortune reports: On Tuesday, speaking on a panel at the World Economic Forum, …

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China is Further Reducing Oil Production

Finance Investment Trading

Domestic oil production in China is expected to continue its fall in 2017. China is one of the largest oil producers delivering 4 million barrels per day. Bloomberg reports: China’s production is forecast to fall by as much as 7 percent this year, extending a record decline in 2016 … That’s about the same size …

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High-Frequency Trading in Bitcoin

Finance Investment Trading

The price of a bitcoin reached $1000 in December, the level previously visited in December of 2013. The latest moves in bitcoin could be caused by active high-frequency trading. Bloomberg reports: Forget libertarians, speculative individual investors and Chinese savers trying to spirit money overseas. The reality is that professionals armed with cutting-edge technology now drive …

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China Foreign Exchange Reserves Plunge

Finance Investment Trading

China foreign exchange reserves fell by another $100 billion in January. As the China’s economy is slowing down, the flight of investors seeking more profitable markets puts pressure on Yuan. The Chinese government, determined to support the value of the currency, is forced to buy Yuan in large quantities. Large scale buying is complemented with …

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