The adoption of smart money in China continues Ascending.

According to Ryan Rabaglia, Head Trader for Octagon Strategy, a Commodity and Digital Asset Trading firm based in Hong Kong, observes, the smart money seems to be staying in bitcoin.

“In the form of small to medium sized institutions taking much larger positions in bitcoin, and a natural progression to larger ones is sure to follow. With all the uncertainties surrounding us in traditional product spaces, alternatives are being sought and although this space is still foreign to most, it’s not preventing the capital inflows we’re seeing” according to Rabaglia.

The demand for digital assets increased during the summer, around the time of the bitcoin halving. Ryan says the trading desk he oversees has seen an increase of  70% in business growth month-over-month for the last three to six months.

“It is a bit surprising we’ve had this type of growth persist at this level, ” the experienced trader says.

Although he has seen institutional smart money come and go, Ryan notices that this time the trend is persistent. “It’s been a very consistent trend over the last year,” he says. “Larger traders and position takers have entered into the market.”

As Beijing reportedly struggles to manage yuan depreciation, and the nation’s reserve to sink to new lows, smart money in China has entered into the digital asset space, which is led by the digital currency bitcoin.

China and bitcoin have seem inextricably linked since the digital currency’s release in January 2009. 90% of bitcoin trade takes place in China, and a robust network of miners, thanks to inexpensive electricity and hardware in the country of 1.35 billion, making it an epicenter of bitcoin.

“China is of course on the forefront in digital payments and sort of migrating over to a cashless society,” Ryan reasons. “The growth of cashless payments here is extreme.”

Feng Xin’an, 43-year-old sales manager with Shanghai-based Maoxin Trade Ltd, claimed he invested about 135,000 yuan ($19,515) into the bitcoin market. “The young generation, like my son and his friends, love to pay with digital currencies,” he told China Daily.

Demand for bitcoin is largely credited as its value continues to rise, a clear example was the record price it earned in New Year reaching a value of one thousand dollars by Bitcoin. There’s doubt the adoption of this currency will continue to increase over time and not only in China but worldwide.

Image: Pixabay

Source: Bitcoin.com

Disclaimer: This press release is for informational purposes only. Information does not constitute an investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent infocoin views should not be attributed to Infocoin.

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