80 percent of Bitcoin volume is exchanged into and out of CNY

According to a study conducted by Goldman Sachs, the second-highest trading currency is the USD, followed by smaller denominations in CNY and EUR.

The amount of Bitcoin trading activity in China has risen, despite Bitcoin’s precipitous price fall from last year’s USD 1,000-plus highs to less than USD 300 today.

China’s central bank clamped down on the cryptocurrency back in December 2013 when it banned Bitcoin transactions at banks, retailers, and payment companies such as Alipay and Tencent. But the data shows that Bitcoin volume continued marching higher as Bitcoin believers kept buying, selling and mining the cryptocurrency.

The fact that China has become a major mining hub is a contributor to its high Bitcoin transaction volume, according to a report from the US-China Economic and Security Review Commission. The report also notes that Bitcoin has lured day traders looking to profit off of Bitcoin’s volatility, as well as younger Chinese investors who might not have the money to invest in property or the understanding to invest in the stock market.