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Cryptocurrency fans and investors alike have been captivated with the value of Bitcoin (BTC) this year. First, there was a dramatic rise in value from a steep 2018 decline. That has been followed with the shedding of market value in recent months. Just when the market thought the bears were in control, a steep bull run once again changed the narrative.
BTC made a huge jump in value. The market value of BTC topped $10,300 in Saturday’s trading according to CoinDesk. Further trading this week has tempered things to a range between $9,000 and $9,500.
The primary reason for the huge weekend spike was China. More specifically, China’s leader Xi Jinping. He was reported as saying that his country should “seize the opportunity” offered by blockchain. China’s central bank, the People’s Bank of China, has been working on creating its own digital currency.
This rapid gain was on the heels of a huge drop in BTC value. The entire cryptocurrency industry is filled with mixed market signals, but the trend has been downward in recent months. The Chinese president recently gave a speech in favor of blockchain technology. He also called upon his country to increase its efforts for development in this field.
The actual trading price of BTC reached $10,332 on that news. It quickly retreated to $9,370 on Monday, but most of the recent gain has stuck with investors. Blockchain is the technology behind cryptocurrency. According to the state media in China, the president noted China’s strong foundation in this technology. He believes the country should take the leading position in this entire sector.
Blockchain acts as a “digital ledger” that maintains a record of transactions and other data. This information spans a network of computers.
Beijing has taken a hard stance against cryptocurrencies. The country banned Initial Coin Offerings (ICO) and forced local trading platforms to shutdown in 2017. However, the central bank has accelerated its plans for a digital currency in recent months. This initiative started back in 2014 as an effort to reduce costs for circulating paper-based money.
The Chinese effort has been likened to Facebook’s plan to launch Libra as its digital offering. That effort has met strong resistance on more than a few fronts. The biggest concern is a disruption of the current regulated financial system. There are also concerns about increased money laundering and financing for terrorists.
In a response to these concerns, Facebook CEO Mark Zuckerberg has slowed the process. He assured US lawmakers that his company would not move forward “until US regulators approve” the plans for launch.
Bitcoin’s overall value is still up 150 percent year-to-date. The all-time recent low reached $3,122 against a high of close to $20,000 in late 2017. The actual BTC trading price is extremely market reactive as demonstrated by Saturday’s spike.