An explosion of interest has hit China after comments by the country’s president, Xi Jinping encouraging blockchain development. WeCHat searches for terms “bitcoin” and “blockchain” has skyrocketed.
WeChat searches (10/23/19):
– 区块链 (Blockchain): 777K
– 比特币 (Bitcoin): 572K
WeChat searches (10/25/19):
– 区块链 (Blockchain): 9.2MM
– 比特币 (Bitcoin): 1.3MM
— Cole Kennelly ⬙ 🦄 (@ColeGotTweets) October 27, 2019
This people’s massive interest happened the day China’s President Xi Jinping delivered a speech at the Political Bureau of the Central Committee of the Communist Party of China which conducted a meeting about blockchain on October 24. On 26 October China passed a new law to encourage blockchain development.
China has banned bitcoin since 2017 despite the fact that the country provides most of the mining hash rate to secure the network. The speech talks about blockchain and never mentions bitcoin, however, this injects some legitimacy to cryptocurrencies having this explosive effect in bitcoin interest to.
Directly after China’s support of blockchain, the BTC price started pumping like crazy making 40% gains in a few hours. This is the third time in the bitcoin history where the price surged by 40% in one day and the pas 2 times the price of bitcoin was cents or a few dollars.
However, it is not sure what caused this massive pump. Has the explosion of interest caused the 40% price rally, or this massive 40% rally has caused the interest explosion? But something is sure that “blockchain changing the future” headlines have invaded the most popular Chinas newspapers.
🇨🇳 China’s LARGEST Newspaper on Blockchain Changing the Future:
1. Verifying personal information
2. Avoid repeat visits in medicine
3. Making travel spending convenient
4. Transactions without 3rd party
5. Track product sources
6. Protect copyrights pic.twitter.com/duYva3EUQI
— Crypto Godfather (@CryptoGodfatha) October 28, 2019
On the other side, there are opinions that China has nothing to do with the recent BTC pump that caused considerable damage to the bears. Nearly half-billion dollars were liquidated that day.
I don’t get the excitement over China approving blockchain.
During 2017 every time they announced a China ban, bitcoin took off another $1,000.
This rally could be about something else:
– Pre Christmas rally.
– 2020 halving.
– CME and BAKKT options in 2020.
– Mass adoption.
— Bit฿it (@BitBitCrypto) October 26, 2019
During the last days, the bitcoin chart was approaching a dead cross, a strong signal to short bitcoin which was followed by this massive pump chasing the bears at least for now.