Despite a wave of bearish calls on social media in recent weeks, the bitcoin price is bucking the trend on Friday. The flagship cryptocurrency has skyrocketed back above $8,000 to set a two-week high at $8,784.
Bitcoin has been consolidating for the better part of October, but it nosedived around 8% on Wednesday. The tables have since turned, however, and at last review, the grandfather of crypto was up nearly 15%.
According to a report out of China earlier this morning, Chinese President Xi Jinping emphasized the use of blockchain technology as an important breakthrough for the country.
Twitter account @cnLedger broke the news of a collective study conducted by the Central Committee of the Communist Party.
Xi stressed the need for increased research, a focus on innovation, and for China to take the lead in the emerging field of blockchain.
The news is timely, but it’s unclear yet whether this is the major underlying cause of today’s price surge. The bulk of bitcoin buyers are riding the wave in the US session after digesting the news.
Global macro analyst and trader Alex Krüger is not convinced of the underlying fundamentals. He keenly notes that Xi’s crypto commentary is likely to benefit private blockchains more than anything else:
China is well-known for keeping a tight lid on its financial matters, but it’s made no secret of its desire to digitize its currency.
Earlier this month, Ripple CEO Brad Garlinghouse warned that the US dollar may be at risk of being displaced, and Mark Zuckerberg told Congress that the US risks relinquishing a leading role in blockchain development to geopolitical rivals like China.
Disclaimer: The above should not be considered trading or investment advice from CCN.
This article was edited by Josiah Wilmoth.
Last modified: January 10, 2020 3:15 PM UTC