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John Kiguru
Nov 2, 2019
by John Kiguru

Bitcoin Surged By 40% In Less Than 24 Hours And China Wasn't The Only Reason

Bitcoin surge
Earlier this week, Bitcoin marked a spectacular move. In less than 24 hours, the asset surged by nearly 45%. This successfully saw it climb from lows of $7,400 to hit highs of $10,500. The remarkable move meant a big payday for holders who were not having the best of months. The trigger behind the move? Well, it was all about china. The Chinese president, Xi Jinping, made an announcement that the government would be fully embracing blockchain technology. While many believed this to be the sole reason for the move, the asset had more to go by. China wasn't the only reason for the 42% surge and Bitcoin was triggered by several reasons

Admittedly, much of the gains were motivated by the announcement from China. And to back the theory, many of Chinese cryptocurrencies also marked remarkable moves, gaining 10% to 30%. The announcement clearly triggered the move and was the nudge needed to get Bitcoin moving in a positive direction. The reason was pretty simple. Chinese people, all over a billion of them, were looking up blockchain technology. It takes no time to discover Bitcoin just beneath blockchain technology and soon they are impressed by its characteristics. Scarcity, adoption, financial freedom and the rest. Soon, they are buying up Bitcoin and prices are soaring. But, did this call for a 40% jump? No.

Reasons On Top China That Triggered The Bitcoin Surge

There was more reason for the surge and China was not the only reason. Other reasons have been backing a move upwards but not many have been enough to trigger it. Furthermore, none was enough to see Bitcoin climb above key resistance levels.

Facebook's Mark Zuckerberg was just days before the jump in front of U.S. senators explaining his current and future plans with Libra. After hours of talk, it was evident that many committee members were against the project. However, it was evident that they were pro-development and were only concerned about privacy and security. Some went as far as to advocate for crypto, singling out Bitcoin. This is especially because the U.S needs to get ahead in the race of crypto adoption. China is already making strides in this front. China is reportedly going to launch a national cryptocurrency soon.

There is also the matter of a "short squeeze" just before the recent surge. An asset rapidly increases in value due to short-sellers trying to cover their positions. This pushes buying volume and prices soar high.

Whatever the reason that triggered the rally, it was much needed and welcome. Now, investors are looking to hit the long term resistance of 13K before getting ambitious and climbing above $16K before the end of the year.

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Bitcoin Surged By 40% In Less Than 24 Hours And China Wasn't The Only Reason
John Kiguru
John is an exceptional writer with a liking on technology, finance and the intersection of the two. A firm believer in the transformative potential of cryptocurrencies and the blockchain. When he is not writing, he likes to listen to Nas, Eminem and The Beatles.

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