This Bitcoin Update for 25 October 2019 provides: an overview of how Bitcoin (BTC) has been doing over the past 24-hour period; a recap of interesting recent news that might have affected its price (or might do so in the future); and useful observations from Crypto Twitter.
According to a report by China’s Xinhua News Agency (the official state-run press agency of the People’s Republic of China), which was published around 10:15 UTC on Friday (October 25), the Political Bureau of the Central Committee of the Communist Party of China (CPC) completed the “18th collective study” on blockchain technology on the afternoon of October 24.
Apparently, China’s President Jinping Xi, who is also the general secretary of the Central Committee of the CPC, gave a speech that “emphasized that the integrated application of blockchain technology plays an important role in new technological innovation and industrial transformation.”
He pointed out that the application of blockchain technology has extended to digital finance, Internet of Things, intelligent manufacturing, supply chain management, digital asset trading and other fields. At present, major countries in the world are accelerating the development of blockchain technology. China has a good foundation in the field of blockchain. It is necessary to accelerate the development of blockchain technology and industrial innovation, and actively promote the development of blockchain and economic and social integration.
President Xi’s remarks were specifically about blockchain technology and not decentralized cryptocurrencies such as Bitcoin (which China does not approve of), but they should help to accelerate the development and launch of the digital Renminbi (RMB).
This news was first broadcast on Chinese TV at 11:00 UTC (or 19:00 Beijing time):
The very first piece of explosion today is from Xinwen Lianbo, the most official TV program of CCP on daily news update, airs everyday 7PM Beijing time
Where “Xi emphasizes on Blockchain tech development and expect major tech breakthrough” was mentioned pic.twitter.com/duxSh6TZXp
— Dovey Wan 🗝 🦖 (@DoveyWan) October 25, 2019
According to Dovey Wan, a Founding Partner of Primitive Ventures, the announcement of President Xi’s highly enthusiastic comments about blockchain technology did not get Bitcoin traders in mainland China too excited (presumably because they understood that the clear message was, as usual, “Blockchain, not Bitcoin”), and immediately after the news came out, there was only a small bump in the Bitcoin price in China and elsewhere, as you can see in the 24-hour price chart below:
It was only five hours later, i.e. around 15:15 UTC when the major price surge (around a $700 increase in 30 minutes), which took the BTC price from $7,727 to $8,446, started.
Here is Wan trying to explain this on Twitter:
I still don’t know whether this is the reason for the Bitcoin pump tho – the first small pump is 6PM china time, before the news was aired on Xinwen Lianbo (7PM) and the major pump is 11PM China time.
So during the news time actually there was little to non price movement pic.twitter.com/frwtwTq878
— Dovey Wan 🗝 🦖 (@DoveyWan) October 25, 2019
also the time divergence indicates LOCAL CHINESE TRADERS WERE INDIFFERENT TO THE XI’s news …
if non-Chinese traders saw the news when they woke up today and pumped it, it’s def an over-read to me
Or it’s just long/short ratio is off and now it’s the time to roast the 🐻?
— Dovey Wan 🗝 🦖 (@DoveyWan) October 25, 2019
Wan also points out that traders in China seemed much more excited about the prospects of Chinese blockchain technology companies (such as XNET):
One liner from Xi is enough as hopium for the entire “Blockchain but not crypto” industry in China.
If you wanna know what pumps more than Bitcoin, see below 👇🏻 XNET is what consider Chinese “Blockchain concept stock” on Nasdaq, pumped 70% today … pic.twitter.com/0XLvV0bGaN
— Dovey Wan 🗝 🦖 (@DoveyWan) October 25, 2019
So, how have other crypto influencers on Twitter reacted to today’s news from China and the over 14% Bitcoin price surge?
Here is what Anthony Pompliano (aka “Pomp”) had to say:
BREAKING: Chinese President Xi Jinping just publicly supported China going all-in on blockchain technology across their economy.
This will be the space race of our generation.
America has to embrace the technology, including Bitcoin, or we risk being left behind.
— Pomp 🌪 (@APompliano) October 25, 2019
As for Gabor Gurbcas, Digital Asset Strategist/Director at VanEck/MVIS, he believes that today’s price surge was caused not just by President Xi’s comments:
3 reasons why #Bitcoin surged today:
> CME Bitcoin futures expired today (4PM London time, last Friday of the month).> President Xi Jinping supports blockchain in China.
> Crypto Capital CEO arrested. Exchanges, such as Bitfinex, may get some of the seized 850 million back.
— Gabor Gurbacs (@gaborgurbacs) October 25, 2019
Today’s price volatility also helped Bakkt set a new daily trading volume record for its monthly Bitcoin futures:
∙ Today's volume so far: 770 BTC
∙ Last traded price: $8,500.00
∙ Trading day progress: 42% (if this continues: 100% equals to 1834 BTC)— Bakkt Volume Bot (@BakktBot) October 25, 2019
As you can see from the tweet below by crypto analytic startup Skew, things are pretty hectic also at BitMEX, where around $150 million worth of short XBTUSD perpetual contracts got liquidated:
Big squeeze ongoing – $150mln of buy liquidations just went through
BTC +13% last 24h pic.twitter.com/mRvkCpuh1y
— skew (@skew_markets) October 25, 2019
Prominent macro economist and crypto analyst/trader Alex Krüger, who usually does not associate major Bitcoin price movements with news, conceded that today’s huge rise in the price of Bitcoin was caused by the news from China:
Technically, $BTC bear trend is over.
Fundamentally, market changed in the last two months for the worse beyond just price. Miners implosion likely incoming.
Impressive BAKKT volume spike (low base effect), now 2% of CME's.
Today's +15% IMO clearly related to China's news.
— Alex Krüger (@krugermacro) October 25, 2019
And finally, crypto analyst/trader Josh Rager, Co-Founder of Blackroots.com, offered this technical analysis:
$BTC price is wanting to test the weekly resistance
This is an important level, the more price tests this area, the more likely sellers run out of ammo in this area
A close above this level would be brilliant pic.twitter.com/eBBrC15N3m
— Josh Rager 📈 (@Josh_Rager) October 25, 2019
Featured Image Credit: Photo via Pexels.com