Bitcoin Soared this weekend over positive sentiments from China after Chinese President Xi Jinping announced that the country would be stepping up its support for the blockchain technology.
The effect was that by Saturday, October 26, 2019, the coin rallied to $9,977 from $7527 in less than 14 hours, gaining more than $2000 in less than a day.
The latest rally was linked to President Xi’s remark that China would bolster support for blockchain during his speech to the Politburo in a meeting on Friday.
The speech coincided with the release of a report of the 18th study on the blockchain technology by the Central Committee of the Communist Party’s Political Bureau.
Short of $10,000 Mark
The news injected a buying frenzy that saw the price of Bitcoin soar close to the $10,000 resistance but didn’t seem to have enough impulse to reach that mark. It is left to be seen if the cryptocurrency would make another attempt at bridging the mark again soon.
As expected, the general coin market reacted positively to the news with most of the coins making remarkable gains for the first time after weeks of drab movements.
However, it is still early to say that this is enough to steer the market in a sustained positive direction for extended periods since as seen Saturday, October 26, 2019, the price of Bitcoin has retracted presently trading around $9,105 at the time of the report.
Week of Mixed News
In the past week, there have been negative sentiments from the United States where the SEC moved against the Telegram Open Network (TON) and the Congress hearing on Facebook Libra. The news from China may just have been the counterbalance the market needed to see some real activity.
Most bitcoins are mined in China and the country with the recent development seems to know it has a lot to gain by throwing its support on the technology. Xi stated that blockchain is an important technology and highlighted use cases such as supply chain management and IoT. That was enough incentive for the coin market to latch on.