The leading digital currency does not cease to amaze the cryptocurrency market. At the end of last week, Bitcoin predicted a serious collapse, and now, like the legendary phoenix bird, it is again full of strength and is ready to fight for a place under the cryptocurrency sun.
Recall, last Friday, according to the tag characteristic of one of the analysts, the head of Facebook Mark Zuckerberg "drove the last nail into the cryptocurrency coffin lid." This was facilitated by statements by members of the US House of Representatives Financial Services Committee. Congressmen expressed concern about the spread of digital currencies, and also stated that they pose a threat to the traditional foreign exchange market and may be used for fraudulent activities. During the meeting, a proposal was also made for a complete ban on virtual currencies.
Experts recall that the cryptocurrency market is very dependent on the news background. Not surprisingly, such information powerfully hit Bitcoin. Last week, the reference cryptocurrency collapsed to a five-month low, having lost almost $1000 per day and hit the bottom at $7330.
However, the surprises did not end there. Toward the close of last week, the cryptocurrency market demonstrated incredible opportunities comparable to the phoenix that rose from the ashes. It exploded amid a PTS take-off that made a jump of $3,000. As a result, the leading digital asset added 40% and reached $10500. On Sunday, October 27, maintaining cosmic speed, Bitcoin stayed at its highest values in excess of $10,000. Other digital assets pulled up behind the reference cryptocurrency. Many altcoins also gained speed. Among them were Ethereum (ETH/USD), which rose by nearly 30%, Ripple (XRP / USD), up 31%, and Litecoin (LTC/USD), soared 35%. On the morning of Monday, October 28, Bitcoin was trading in the range of $9410– $9411, while analysts recorded a downward trend.
According to experts, the current rise was the largest since February 2014. The colossal driver of this take-off was the news from China. Chinese President Xi Jinping in his speech supported the development of blockchain technology in general and bitcoin in particular. He formed an impressive momentum for the market, improving the situation significantly. According to the Chinese leader, the country is ready to increase investment in the further development of blockchain technology and major cryptocurrencies.
According to experts, the growth of investment by Chinese investors is another catalyst for the growth of the digital asset market. They could become more active after the speech of President Xi Jinping. According to the head of China, the country has every chance to take a leading position in the field of blockchain technology. Xi Jinping drew attention to the need for its integration into the real economy and information technology, such as artificial intelligence, Big Data and the Internet of Things.
The statement of the Chinese leader provoked an almost instantaneous response from the National People's Congress (Parliament of China). The agency approved a law on cryptography, which defines the standards of cryptographic applications and the process of managing public/private keys.
However, price drops were not in vain for bitcoin. Currently, it has rolled back below $10,000, and the cryptocurrency market has entered the consolidation phase. At the moment, the BTC/USD pair was trading at fairly low values, around $9380– $9381, causing market tension to cause a further fall.
In general, the fears of experts were not in vain. Bitcoin was able to recover to an impressive mark of $9492– $9493, but for a long time it was not possible for it to gain a foothold in its positions.
At the moment, the cryptocurrency pair runs in the low range of $9380– $9381, previously tested, but is not going to surrender completely.
As a result of the powerful breakthrough, holders of the number one cryptocurrency and traders with open long positions in bitcoin and other digital assets received impressive profits. The remaining market players after the reversal of the BTC/USD pair and its collapse to the level of $9055 expected losses. According to experts, this was a significant level of support, on which the pair relied, starting from mid-June 2019. Now the market will have to carefully monitor both the situation in general and the actions of the Chinese leader in particular, so as not to miss the capricious bird of fortune, which so suddenly fluttered into the cryptosphere and suddenly left it.
The material has been provided by InstaForex Company - www.instaforex.com