Bitcoin (BTC) has recently surged from under $7,500 to over $10,500 in just a few hours due to China’s official decision to promote blockchain technology adoption.
Experts consider it is possible for the cryptocurrency to continue growing in the future if interest remains high.
Bitcoin Could Continue Growing
According to the cryptocurrency analyst Nigel Green, CEO of deVere Group considers that Bitcoin will be hitting $12,000 by the end of the current year. In order for this to happen, it will be very important for the most popular cryptocurrency to remain above $8,500.
At the same time, despite the recent price drop, Bitcoin was able to avoid the so-called Death Cross involving the 50-day moving average and the 200-day moving average. It would be extremely bearish if the 50-day MA falls below the 200-day MA.
Mr. Green considers the $8,500 level acted as a support in the past. If Bitcoin remains above that level, Green believes the most popular cryptocurrency could experience a breakout.
Several reasons could push individuals to purchase Bitcoin and other cryptocurrencies. Many analysts consider Brexit negotiations, the trade ware tensions between China and the United States or an economic crisis could have a positive impact on the cryptocurrency market.
Marcus Swanepoel, the CEO of the recognized cryptocurrency firm Luno, commented about the change in Bitcoin’s sentiment:
“After the quick push higher there will be profit taking today but the overall change in sentiment is very positive.”
He went on saying that it seems there is no specific answer to why Bitcoin experienced such large gains in the last few days.
Luno is a company located in London that facilitates Bitcoin storage through its Luno Bitcoin Wallet. At the same time, the firm operates cryptocurrency exchanges allowing users to buy and sell Bitcoin and other cryptocurrencies.
According to Luno’s official site, the Luno Wallet makes it easy and convenient to store Bitcoin. The wallet is also available on iOS, Google Play and web, offering services to all kinds of users.
China’s Influence In The Cryptocurrency Market
Nonetheless, Chinese President Xi Jinping has recently talked positively about blockchain technology and has pushed for companies in the country to embrace it and move forward with it.
Speaking at the Political Bureau of the Central Committee last week, Xi has also explained that Bitcoin’s underlying technology is an ‘important breakthrough.’
China is the second-largest economy in the world and this could have large positive effects in the whole blockchain and cryptocurrency market.
Although Bitcoin surged, Chinese-based crypto projects such as NEO or Ontology (ONT) registered massive gains as well after these comments. These cryptocurrencies surged by over 40% as well in just a few hours.
Several companies in the country, including banks, could start developing their own blockchain projects, networks and digital currencies.
For example, the Industrial and Commercial Bank of China (ICBC), has apparently rolled out a blockchain-based cryptocurrency wallet. The bank is one of the largest in China and the world as well.
It is also expected for other banks to follow the trend and release their own crypto and blockchain solutions for customers.
Industrial and Commercial Bank of China (ICBC, one of biggest in China) rolls out Blockchain-based Crypto Wallet. Moving so quick! Other banks follow soon! pic.twitter.com/9EMVvp6l8N
— Long Zhang (@LongZha46233912) October 29, 2019