BEIJING, China – Traders are confused as to where China stands when it comes to cryptocurrency due to mixed signals from the Chinese officials.
The positive sentiment for crypto traders came after the highly enthusiastic speech made by Chinese President Xi Jinping regarding blockchain on October 24. It has powered up the Bitcoin price up to more than 27% in just 48 hours. But, the hope for an increase in momentum on Bitcoin price was halted by the recent events in the country.
Such events suggest that crypto traders should involve cautious in terms of interpreting the pro-blockchain stance of the government, as it doesn’t give carte blanche to all cryptocurrency companies and firms.
According to a report on Friday made by Chinese official state-run media, Xinhua News Agency, the Communist Party of China’s Political Bureau of the Central Committee, on the afternoon of October 24, is already done with the 18th collective study that covers blockchain technology.
The Chinese President, who is also the committee’s general secretary, later gave a speed where he stressed that the integrated utilization of the blockchain technology has a huge role when it comes to industrial transformation and new technological advancement.
Although the remarks made by President Xi were particularly about the blockchain technology and not about cryptocurrencies such as Bitcoin, the reports about his speech led to crypto traders from all over the globe to believe that the Chinese government fully supports blockchain and cryptocurrency, eventually, it powered up the rise in Bitcoin price over 27%, dragging it from $7500 to $9500 in just less than 48 hours after the report about the speech first came out.
However, recent events in China led to the Bitcoin price falling down. First, the event on November 15 confused the market after the president’s speech when TRON and Binance’s Weibo accounts got blocked. It led to a drop in the price of Bitcoin to $8500.
Another report on November 18, Monday, shook the crypto market again, where the main state TV broadcaster in the country, China Central Television, aired an episode with a focus on blockchain and crypto. It was titled as something that depicts blockchain as not an ATM.
According to a transcript in the episode, while there’s great value in blockchain in terms of public services, tracking of agricultural products, and trade finance, the rise of blockchain has also caused some unrest in the society.
The effect of the doubt on whether China is pro-crypto is a shaky Bitcoin price. As of November 19, 10:41 UTC, Bitcoin is at $8134, which is 4.17% drop from its previous price in just 24 hours.