Of all the things that were expected to pull Bitcoin out of the price-drop it’s been having few expected it to be the Chinese President, Xi Jinping, publicly stating that China should embrace blockchain.
Due to Xi’s statement that China should seize the opportunity that blockchain provides, Bitcoin managed to jump up 22%.
Two years ago, China’s central bank ordered the closure of all mainland-based cryptocurrency exchanges. Now, though, Xi has given words of support to Blockchain: A significant aspect of cryptocurrencies as a whole.
Mati Greenspan, a Senior Market Analyst at the financial exchange eToro, has stated that this would generate good sentiment around crypto as a whole. This, in turn, could create new sentiment for Bitcoin, he added.
Greenspan explained that having one of the world’s largest economies publically embracing blockchain technology has had a positive effect on the crypto industry.
As the market prices start to rise, Bitcoin, a central figure in blockchain, will get a boost as well.
Greenspan added that the massive price jump happened directly after Xi’s comment, showing the world just how authoritative one President’s commentary can be to the state of cryptocurrencies.
The same rules apply to anything else that heavily relies on supply and demand. Entire stocks or currencies have the potential to crash or skyrocket over a rumor.
Greenspan deduced that it was Xi’s news that caused the uptake. He commented about how investors can only ignore so much good news before they have to react.
After all, Greenspan remarked that Xi is one of the world’s most prominent figures.
To testify to this, Bitcoin’s price jumped up 22%, clocking in at $9523.44 compared to $7430.67 it clocked less than two days ago.
This massive surge started at around 10:15 UTC, directly after Xi gave his favorable comments and allowed it to be published on Chinese media.
It’s, as far as the general public is concerned, the Chinese President’s first in-depth remark about blockchain technology as a whole.
While it’s well known that China is developing its own digital currency, they have also banned other coins being traded.
When their cryptocurrency comes out, they will hold a monopoly over one of the most populous countries in the world.
WeChat Pay and AliPay, two of China’s most prominent online transaction platforms, will doubtlessly take part in this new “pro-blockchain” announcement Xi has made.
As the wheel starts to roll and gain momentum, it’s only a matter of time before the cryptocurrency is announced.
For all we know, Xi had planned this to come just before the announcement of a cryptocurrency. While it may be touching into the Conspiracy Theories niche, with someone as powerful as Xi, it’s something that has to be asked.