Bitcoin prices have shown a significant increment specifically during the previous months before the recent drop in the prices of bitcoin recently. Bitcoin’s current price is $10,000 after suffering the loss in previous months. The world’s most prominent digital currency has demonstrated an upward trend around 9:45 according to EDT. Statistics revealed by CoinDesk data revealed that bitcoin has recently reached as much as $10,332.41.
Cryptocurrencies have recently increased by 39.4% from the intra-day low of $7,393 within a few hours as the statistics revealed by CoinDesk data.
Cryptocurrency is an excessive volatile so investing in bitcoin is a bit risky, and the market isn’t governed by a central regulatory authority. It is generally regarded as a good practice to invest only spare money in the crypto market. It is strongly recommended to invest money which you can afford to lose.
The digital currency prices have risen to $8,700 as a result of the recent boom in the crypto market, and after recent gain, bitcoin prices exceed more than $10,000 last night. This bullish activity takes place after bitcoin suffers a noticeable loss during the previous month. The previous drop down in bitcoin price discourages retail investors.
The mean reason behind the dropdown of bitcoin prices is that recently Facebook has proposed its Libra cryptocurrency project
Apart from that, recently crypto analyst prophecies that cryptocurrencies will undergo severe decline which would be the possible outcome of a 50-day moving average falling below the 200-day moving average. Despite the recent decline in bitcoin prices, the crypto market has received a certain boost specifically when Xi Jinping, president of the republic state of China expressed his view about the sustainability of blockchain technology. He emphasized that blockchain can play a vital role in this technological era.
John Tordo, director of digital currency research center expressed his perspective on this scenario with these words:
“Initially there was no positive speculation in the market about bitcoin prices, meanwhile Xi Jinping emphasized the importance of blockchain technology. His positive views act as a catalyst in creating a positive sentiment in the market thereby bitcoin prices go up.”
Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, strongly believes that recent augmentation in bitcoin prices is particularly due to the president of China’s comments. He asserted:
“There were quite a lot of peoples who are selling their crypto trading assets due to the consistent dropdown in bitcoin prices, but the president’s Xi recent announcement will create a ripple effect across the whole of China. Many smart retail investors are quite aware of this fact that’s the reason behind the recent increment in bitcoin prices. As cryptocurrency has received too much traction from China, it creates a positive sentiment in the market.”
Many crypto analysts firmly believe that the consistent upward movement of bitcoin plays a vital role in removing the fear of missing out from the crypto investors. This is the most prominent factor that will make bitcoin sustainable digital currency in the upcoming future.
Conclusion
If China expresses his deep interest in adopting cryptocurrency such as bitcoin as a medium of exchange for the digital transaction then it will create a positive sentiment in the market amongst retail investors willing to invest in bitcoin. Having China on board to legalize and adopt cryptocurrency is as crucial as having America on board.