HomeCryptocurrencyBitcoinBitcoin Price Records Staggering $550 Increase in a Single Day to $4,550

Bitcoin Price Records Staggering $550 Increase in a Single Day to $4,550

-

After all, it seems as if the Chinese cryptocurrency industry and its central bank, the People’s Bank of China (PBoC), has minimal impact on bitcoin, Ethereum and the global cryptocurrency market.

On September 4, PBoC along with three Chinese government financial agencies declared initial coin offerings (ICOs) as an illegal method of fundraising. Subsequent to the announcement of China, the price of Ether, the native currency of Ethereum, and leading cryptocurrencies such as bitcoin declined substantially in value. The price of Ether dipped below the $280 mark, while bitcoin price moved closer to the $4,000 region.

However, within a 24-hour period, both bitcoin and Ethereum have recorded substantial gains, demonstrating a complete recovery from the announcement of PBoC. Specifically, the price of bitcoin surged from $4,000 to $4,550, as investors and the market displayed absolute confidence in bitcoin.

In a statement, Bitfury vice chairman George George Kikvadze explained that PBoC and the Chinese cryptocurrency exchange market do not have a major influence over the global bitcoin and cryptocurrency market. Prior to the regulation of the zero-fee trading system, the vast majority of bitcoin users and analysts perceived China as the largest bitcoin and cryptocurrency market. However, that has not been the case for awhile. US, Japan and South Korea have overtaken China in almost every way, in terms of trading volume, user base and activity.

With multi-million dollar venture capital investment and exponential growth in user base, Japan’s largest bitcoin exchange BitFlyer is set to expand throughout the US and South Korea’s leading exchange Bithumb evolved into the largest cryptocurrency exchange in the world.

“PBoC’s impact is way overblown. China is not as important as before. Just 15 percent of global bitcoin trade vs Japan + Korea + USA = 80%,” said Kikvadze.

Additionally, even in the case of Ethereum, South Korea remains as the dominant exchange market with 34 percent market share, while US falls behind as a distant second with 22.4 percent market share. Hence, unlike 2013, China, its government and financial regulators have minimal impact over the global cryptocurrency ecosystem.

Some cryptocurrency analysts have suggested that the price of bitcoin recovered in such a narrow timeframe because speculative investors were not aware that the ICO ban targeted Ethereum and was not associated with bitcoin in any way. But, that theory is not coherent with the fact that Ethereum was also able to recover to exactly where it was prior to the ICO ban from PBoC. Therefore, it is highly likely that investors across the global bitcoin and cryptocurrency market have become aware of the limited impact China can cause.

More importantly, as CCN previously reported, many indicators suggest that bitcoin will most likely sustain its upward momentum in the upcoming days and weeks. Two important short-term factors to acknowledge are the rapid adoption of the Bitcoin Core development team’s transaction malleability and scaling solution, and rapidly growing demand toward bitcoin from both institutional and professional investors as a result of the rising tension between the US and North Korea.

Not even 2 weeks after activation and the % of  tx’s per block is rising nicely. Good work everyone! http://segwit.party/charts/# 

As SegWit adoption continues to increase at a rapid rate, bitcoin transaction fees will be reduced significantly, even by over 50 percent, as the GreenAddress wallet development team suggested.

LATEST POSTS

Cyprus registers Binance as a cryptocurrency service provider.

Binance, a cryptocurrency exchange, will be able to provide services for virtual currencies in Cyprus as a result of the platform's recent registration with the...

More than 24,000 ATMs in Brazil will offer USDT through Tether and Smartpay.

Usdt, the largest dollar-pegged stablecoin on the market, was created by Tether, a company. Tether recently announced that more than 24,000 ATMs in Brazil will...

To solve the blockchain modularity issue, Celestia raises $55 million.

The project Celestia, which seeks to address the alleged centralization issue in the current monolithic blockchains, has announced the completion of its most recent funding...

Hong Kong considers removing the “Professional Investor-Only Requirement” and allowing retail investors to trade cryptocurrency.

Securities and Futures Commission (SFC) of Hong Kong's director of licensing and head of the fintech division both confirmed that the regulator is taking into...

Follow us

13,033FansLike
3,703FollowersFollow
0SubscribersSubscribe

Most Popular

spot_img