Bitcoin posted a massive 42% gain yesterday, going from $7,400 to more than $10,000. It is the third-largest single-day swing for Bitcoin since its creation.
The last few times that Bitcoin gained more than 40% in a 24-hour period, the volume was still too low for it to move quickly. The first time Bitcoin was at just $0.40, and the second it was at $5.65. However, in the last 24 hours, Bitcoin saw a volume of $45 Billion.
After Bitcoin touched its five-month low last week, most analysts expected it slide further. However, the bulls decided to shake things up a bit.
The previous two times Bitcoin saw a >40% daily gain, it was trading at $0.40 and $5.65.
Today, Bitcoin’s 42% swing is the 3rd largest daily gain in price history.
Data via @coinmetrics pic.twitter.com/PKHQgNlSUy
— Yassine Elmandjra (@yassineARK) October 26, 2019
New Tether Printed For Investors
Tether is busy minting more USDT for investors to buy Bitcoin with. It is an incredibly bullish signal, as BTC/USDT is still the most popular trading pair on most exchanges. With large amounts of liquidity, most whales prefer trading in these pairs.
Also, whenever a large amount of Tether is printed, big orders usually start appearing on exchanges. The sudden uptrend forced traders to close their short orders, pushing Bitcoin’s price further up.
China’s Blockchain Adoption Push
Meanwhile, Bitcoin’s meteoric rise coincides with Chinese President Xi Jinping’s push for Blockchain technology. During his speech at a Politburo meeting of the Communist Party of China’s Central Committee, he stressed the importance and significance of Blockchain technology.
However, China itself is not a crypto-friendly country. It banned cryptocurrency exchanges back in 2017 and regulates blockchain networks. Chinese companies are required to register with the country’s Cyberspace Administration before launching a blockchain network.
P2P trading and cryptocurrency OTC desks continue to thrive in China. President Xi’s push for Blockchain could’ve been a silent nod towards cryptocurrencies, triggering yesterday’s bull run.
Do you think China will reverse its crypto ban? Will Bitcoin continue to shoot even higher? Let us know your thoughts in the comments below.
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