The Bitcoin market surged up to 22 percent over the weekend. Speculation pointed that China was responsible for the significant rise of Bitcoin value after Chinese president Xi Jinping announced the country's future investments on the blockchain.
Since Friday, October 25, 2019, Bitcoin's prices shot up. A significant rise of 22 percent on Bitcoin value was realized. The causes were fresh legal efforts over Bitfinex, short squeezes, and the Chinese president's announcement that China would invest more in blockchain technology in the coming months.
Last Saturday, co-founder of cryptocurrency index fund Morgan Creek Digital Anthony Pompliano posted a tweet and claimed that China might buy all 21 million bitcoins in the future, reported Yahoo! Finance. He also added that 18 million bitcoins are currently minted and that China's move would pose a challenge against the United States market.
In a Twitter post, Chinese investor Dovey Wan revealed that 'blockchain' had been searched the most in the country's leading messenger app WeChat. The activity was presumed caused by President Xi's announcement of investing more into Bitcoin. Wan said that the surge of information inquiry about the bitcoin market signified that investors got excited about the announcement which explained the increase of Bitcoin value over the weekend.
Prior to the announcement, a Chinese court ruled that Bitcoin is private property and that it may be treated like any other asset in the market, reported Decrypt. Nonetheless, the country summarily banned Bitcoin trading altogether. Simultaneously, it has been believed that China plans to build its own cryptocurrency, according to a partner at Castle Island Ventures. Nic Carter revealed that China has been hostile toward the Bitcoin market in recent years.
Carter said, "It's probably traders reacting to it to some degree. But the size of the move was shocking." He added, "We'd need something cataclysmic to explain a move that significant."
