China’s Stance on Bitcoin: What Does It Mean for the Market?
Zameer Attar27 Sept 20232 min read
The crypto market has recently been under the weather, with indicators showing downward shifts. Interestingly, these ups and downs offer a deep dive into the current state of cryptocurrency and why the market is down today.
The Crypto Market’s Rollercoaster Ride
Once riding high, the global crypto market began to lose steam on July 13, hitting $978 billion in early September and a bottom of $601 billion in mid-September. Yet, a glimmer of hope appeared when it began an upward move, steadying itself just above the coveted $1 trillion line. A notable bullish divergence in the daily RSI added a silver lining, suggesting a bounce back might be on the horizon.
BTC and ETH Feel the Heat
The past week showed promise as most cryptocurrencies, including BTC and ETH, surged slightly. However, the tide turned as the new week began, sweeping most gains away. Bitcoin’s value took a 4.01% dip over the week, although its monthly chart managed to stay green with a slim rise. Ethereum, not far behind, mirrored Bitcoin’s trajectory. It’s now trading at $1,596, showing a decrease of 0.02% in a day and 3.6 over the past month.
Federal Reserve’s Influence
One can’t help but wonder if recent comments from the US Federal Reserve influenced the market dynamics. When Chairman Jerome Powell hinted at possible rate hikes if the economy surpassed projections, the ripples were felt across the crypto sea. Following this, Bitcoin’s price navigated sideways while Ethereum trailed closely.
China’s Stance and Trading Volumes
On the brighter side, there seems to be growing acknowledgment of Bitcoin in China. A Shanghai Court report highlighted the distinct nature of digital currencies. However, it’s not all sunshine and rainbows. Bitcoin’s trading volumes on spot exchanges have plunged to their lowest in half a decade. Experts from CryptoQuant suggest that concerns about the larger economic picture might be casting shadows over trading enthusiasm. With this backdrop, Bitcoin might hover below the $26,000 mark by October 1 unless some groundbreaking news shakes up the scene. At the time of reporting, Bitcoin is priced at $26,285.
