Chinese Interest in Bitcoin Remains High Post Crypto Rally According to Data

Tony "The Bull" Severino

5 years ago

2 mins read

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Last week, news that Chinese President Xi Jinping spoke in support of blockchain technology, caused crypto markets to surge and Bitcoin to set its third-largest one-day gain percentage-wise in the asset’s ten-year history.

Price action has since slowed, however, according to metrics from popular Chinese websites, interest in Bitcoin remains just as high, and could be a sign that another push from bulls could soon be coming.

China Continues To Show Increased Interest in Bitcoin Following Massive Pump

Chinese President Xi Jinping’s nod of approval of the blockchain technology underpinning Bitcoin and many other crypto assets sent shockwaves throughout the industry and sent the prices of leading cryptocurrencies surging over the last week.

Bitcoin was trading at a local low of $7,400 then suddenly rocketed all the way to $10,500 before a pullback to refuel its jets occurred. The move set records for the largest one-day gain since 2011, and the asset’s third-largest one-day gain in history.

Following Bitcoin’s pump, Chinese altcoins such as NEO began to spike as well. Tron, Bytom, and a few other Chinese altcoins followed, surging over 30% intraday.

Chinese online interest in bitcoin (比特币) has remained high. This is good. Charts are for Weibo, Wechat and Baidu. pic.twitter.com/hg8O03ZYQX

— Alex Krüger (@krugermacro) October 29, 2019

The pumps have since started to fade, however, the current price action could just be consolidation before another move higher. According to data from popular social media messaging app WeChat, microblogging service Weibo, and search engine Baidu, interest in Bitcoin coming out of China remains just as strong as it was when the news was first announced.

But Will China Really Take to Expensive Crypto When They Are Launching DCEP?

Despite the sudden surge in interest around Bitcoin, some remain skeptical. Popular crypto influencer Dovey Wan points out that the average median household income in China is a mere $10,000 – just about the price of one full BTC at current prices. She concludes that most citizens will view Bitcoin as “too expensive,” and will instead look to cheaper altcoins and blockchain stocks.

Please keep in mind that the average annual household income in China is $10k

For whoever is new to Bitcoin in China, 99.9% of the chance he/she will think Bitcoin is already "too expensive"

That's why they first rush to stock, maybe cheap alts after seeing the Xi News

— Dovey "Rug the fiat" Wan (hiring) (@DoveyWan) October 29, 2019

Both asset types also gained on the news, but even that may be a temporary spike, as China has revealed that it will soon debut its own centralized digital currency, DCEP.

The People’s Bank of China will roll out DCEP and make it the digital currency of favor in the country. China is notorious for its closed wall policies that control the flow of information that its citizens receive. DCEP will likely be used for similar purposes, and China could view other cryptocurrencies like Bitcoin as opposition to the new national currency, and seek to either destroy Bitcoin, or potentially ban their citizens from using it.

Xi’s stamp of approval on blockchain doesn’t necessarily translate into support of Bitcoin, and only time will tell if the recent surge was warranted, or if it was simply a news event for whales to pump Bitcoin under a false narrative.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.