Bitcoin makes strong gains amid market optimism about Chinese President's statements

Bitcoin unexpectedly got a strong boost last weekend, breaking out of the lows to rise sharply above the $10,000 levels, after Chinese President Xi Jinping delivered a speech in support of blockchain technology in addition to calling on his country to exploit this technology and act. On its development, which increased market optimism about the future of digital currencies and blockchain technology.

The value of the most famous currency in the world has jumped To the level of $ 10,332 last Saturday, its highest level in five weeks, with the acceleration of bitcoin purchases, supported by the statements of the head of the second largest economy in the world for blockchain technology.

Bitcoin - October 30

Last Friday, Chinese President Xi Jinping said that China has a strong foundation and we should look forward to taking a leading position in the blockchain sector, and it is necessary to seize the opportunity offered by blockchain technology, adding that this technology can be used in many industries, including That's finance, education and health care.

Beijing has reportedly taken a tough stance on cryptocurrencies, banning initial coin offerings and forcing domestic cryptocurrency exchanges to shut down in 2017.

And it was reported earlier that the Chinese central bank is working to create its digital currency, which has accelerated the pace of its development in recent months, and this coincides with Facebook’s aspiration to restructure the global financial services industry through a cryptocurrency called Libra.

The People's Bank of China set up a research team in 2014 to explore the use of digital currencies to reduce the costs involved in trading traditional fiat money, and a senior bank official said last month that the planned digital currency would bear some similarities to Facebook's announced Libra.

Libra has come under intense scrutiny by regulators around the world, who worry that Facebook's proposed digital assets will disrupt the financial system and could increase risks such as money laundering and terrorist financing.

Facebook founder Mark Zuckerberg made his comments about the digital currency Libra, which the company intends to launch next year, and Zuckerberg said that it was not launched until US regulators agreed.

Bitcoin has soared since the beginning of this year by nearly 150% which represents a significant turnaround from last year when the cryptocurrency plunged as low as $3,122 after hitting an all-time high in December 2017 at nearly $20,000.

Analysts attributed the strong gains made by the popular currency this year to the entry of companies such as Facebook into the crypto arena, which gave some legitimacy to digital currencies and the crypto industry.

Bitcoin is expected to enter a bull market to set new highs amid market optimism about the future of digital currencies and the crypto industry.


Mohamed Abdel Khaleq

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