The China Effect- Bitcoin Skyrockets
China's acceptance of Bitcoin and interest in cryptocurrency has pumped Bitcoin 15% to $9,500 and has boosted the price of Chinese cryptocurrency projects including Tron and Neocoin.
A long-standing catalyst for Bitcoin and the rest of the cryptocurrency market is China's acceptance of cryptocurrency. China has a had shaky relationship with the digital asset.
This weekend, Chinese President Xi Jinping expressed his acceptance of digital currency and his wish for China to take a leading position in the industry. The result was a 15% jump in Bitcoin. Altcoins including Tron and Neocoin with operations in China jumped. Tron took a jump to the 10th largest cryptocurrency by marketcap.
We have seen China threaten to ban Bitcoin and cryptocurrency mining operations in the past, and the effect those initiatives had on the cryptocurrency market. This catalyst has pumped the market, and has temporarily overcome the ugly Bitcoin chart. Prior to this announcement, Bitcoin was facing downward momentum, and was headed to a lower resistance of $7,000. The outlook appeared dire before this mega catalyst. Investors and traders have bought the rumor, will they sell the news?
The Central Bank of China (PBOC) is developing a digital currency under the sponsorship and direction of Jinping. Much of this decree on Jinping's part is likely to support this effort and the Chinese cryptocurrency industry. As Zuckerberg comes under intense scrutiny for his Libra cryptocurrency by the United States government, Jinping and the Chinese government is embracing cryptocurrency.
China is home to Binance, the World's largest Bitcoin mining facilities and now is becoming the biggest supporter of Bitcoin and the cryptocurrency market at large. The news of China's continued support of the cryptocurrency industry is great news, especially ahead of November, which is historically Bitcoin's. Best performing month, and just 6-months ahead of the Bitcoin rewards halving. Wait for a slight pullback to around $8000 before buying in to the rally. Hold on!
Picture from Pixabay.