Bitcoin Surges Confidently Above $7000 Amidst China Crackdown
The unprecedented bull run in the Bitcoin prices which has confidently soared above $7000 has just kept everyone thinking – supporters and critics alike. In the recent past, prominent figures from banking and other financial institutions have voiced out strong criticism to the decentralized nature of cryptocurrencies saying it is just a “bubble”. On the other hand, supporters of cryptocurrencies who have been so far leading the charge are backing it by every means with the odds currently staying in favour of them.
Almost two months back in early September, the cryptocurrencies market received a huge blow when the Chinese government authorities cracked a major whip on ICOs and asked all local cryptocurrency exchanges to shut down operations. With China contributing significantly in daily trading volumes, the price of Bitcoin fell below $4000. In the aftermath of this news, major exchanges like Huobi, BTCC and OKCoin considered shifting it operations base to Hong Kong.
CnLedger – a trusted news source from China reported that the exchanges later launched over-the-counter (OTC) exchanges in Hong Kong which allowed investors to trade bitcoin with Hong Kong dollar, Chinese Yuan and other currencies.
Read Full Story: Chinese Exchanges To Launch P2P Cryptocurrency Trading Platform
After settling of the Chinese crackdown, Bitcoin has been on an continuous upward movement ever since and has almost double with a recent new high above $7300. This meteoric surge in the price of Bitcoin has made one thing clear that it is quite a lot resilient to global uncertainties and instability in global markets.
Panos Mourdoukoutas, Professor at LIU Post in New York and Columbia University, says that Bitcoin has proved to sustain without Chinese markets which has contributed majorly in terms of trading volumes prior to the ban.
However, off lately, rumours about China reconsidering to uplift the ban and resuming the cryptocurrency operations in the country have emerged. This is considered as a political move as the re-election of Chinese President Xi Jinping comes near. Many experts believe that the previous ban was temporary in order to appeal the communist party at home.
Independent researcher Jon Creasy said:
“President Xi Jinping is preparing for his October 18th reelection, and wants to appeal to his Communist voting bloc. My prediction is this: as soon as President Xi Jinping is reelected — and he will be — conservative, free(er)-trade legislation will be put in place, and Bitcoin exchanges will be reinstated. In fact, I wouldn’t be surprised to see the Chinese government encouraging certain exchanges and cryptocurrencies, once this legislation hits.”
However, all the showdown with the Bitcoin prices in the past two month has made many things clear that the cryptocurrency markets will not just sing to the tune of powerful players and can sustain without them. But with major players considering to participate in the markets there is no doubt to it that it will give the cryptocurrency markets a significant strength.
Also Read: Goldman Sachs CEO Not Against Bitcoin
If China lifts the trading ban and resume the operations, the prices for Bitcoins and overall the cryptocurrency market valuations will surely inch towards newer highs.
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