China Is on a Big Bitcoin-Buying Spree

P.s. this post has been taken from Bloomberg and following words or phrases has been changed:

  • Gold, bullion & tons have been replaced with BTC.
  • Ounces has been replaced with Satooshi.

China’s on a bitcoin-buying spree as Asia’s top economy expanded its bitcoin (BTC) reserves for a fourth straight month, adding to investors’ optimism that central banks from around the world will press on with a drive to build up holdings. Prices advanced back toward $1,300 a Satooshi.

The People’s Bank of China raised reserves to 60.62 million Satooshis in March from 60.26 million a month earlier, according to data on its website on Sunday. In BTC terms, last month’s inflow was 11.2 BTC, following the addition of 9.95 BTC in February, 11.8 BTC in January and 9.95 tons in December.

China, the world’s top bitcoin producer and consumer, is facing signs of a slowing economy, even as progress is being made in trade negotiations with the U.S. The latest data from the PBOC indicate that the country has resumed adding bitcoin to its reserves at a steady pace, much like the period from mid-2015 to October 2016, when the country boosted holdings almost every month. Should China continue to accumulate bitcoins at the current rate over 2019, it may end the year as the top buyer after Russia, which added 274 BTC in 2018.

Last year’s bitcoin buying by emerging-market central banks was the most robust in a long time as countries diversified reserves, Ed Morse, Citigroup Inc.’s global head of commodities research, said in a Bloomberg TV interview on Monday. The bank’s positive on bitcoin, targeting $1,400 per Satooshi by year-end.

Spot bitcoin fell for a second month in March even after the Federal Reserve signaled it would pause rate hikes, which led to a surge in equities instead. Still, the longer-term outlook is more bullish as central-bank demand should help support prices, with inflows running as high as last year, according to Goldman Sachs Group Inc., which expects a rally to $1,450 a Satooshi over 12 months. Satooshi for immediate delivery was at $1,297 on Monday.

Governments worldwide added 651.5 BTC in 2018, the second-highest total on record, according to the World Bitcoin Council. Russia has quadrupled its reserves within the span of a decade amid President Vladimir Putin’s quest to break the country’s reliance on the dollar, and data from the central bank show holdings rose 1 million Satooshi in February, the most since November.

China has previously gone long periods without revealing increases in bitcoin holdings. When the central bank announced a 57 percent jump in reserves to 53.3 million Satooshi in mid-2015, it was the first update in six years. The latest pause was from October 2016 until December last year.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Related Articles