In a bullish run, Bitcoin prices shot up about 40% over the weekend, climbing off a 4-month low it had reached 2 weeks earlier following positive remarks about the blockchain network by Chinese President Xi Jinping.
Xi had mentioned that China will embrace blockchain, the technology that underpins Bitcoin, and will seize the opportunities the network has to offer. And the leader of one of the world’s largest economies, Xi is definitely one of the most important people in the world, hence a positive remark from him did not fail to leave its marks on the cryptocurrency.
Bitcoin, the leading cryptocurrency jumped as high as $10,500 on Saturday from $7,500 in just a few hours after Xi’s speech. However, the price has since then eased to around $9,279 as at press time.
Other prominent cryptocurrencies also had a jump. Ethereum (ETH), rose to $185.76, Bitcoin cash (BCH) jumped to $292.28 and Ripple’s XRP trades at $0.294.
Since 2017, China has had a tough stance on cryptocurrencies, banning initial coin offerings and forcing local trading platforms to shut down. But its central bank, the People’s Bank of China (PBOC), is said to have been working on its own digital currency.
Comments by Xi shows that China will also be making use of the opportunities offered by blockchain – in finance, education and healthcare.
If there’s one thing that has been proven over the last few years on the issue of cryptocurrencies, it is that they are very volatile. Bitcoin’s value rose rapidly and broke several milestones all through the year, reaching its all time high of $20,000.
Since then, the currency has continued to crash, sometimes violently, and rise. Sometime in May saw it make an impressive comeback from below $4000 to $9,000, its highest after almost a year following a surge in the number of companies launching products related to cryptocurrencies.
One thing is certain, cryptocurrencies are not stable – at least not yet. There’s still a long way to go and plenty of developments to make. This includes involvement from governments and financial institutions in order to push ahead with initiatives that will create the needed legitimacy and stability to the industry.
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