In the wake of Bitcoin’s October 24 crash, the cryptocurrency has enjoyed slow, steady growth. The recovery comes after an October 25 speech in which Chinese president Xi Jinping announced that China would step up its overall endorsement of blockchain technology.
The Chinese president stated that blockchain technology is an upgrade of current systems because it improves data sharing, while simultaneously reducing operating costs. He said the technology will help countries develop their digital economies, thus encouraging economic and social growth. Furthermore, Xi, who is also the general secretary of the Chinese Communist Party, announced that blockchain represents a strategic technological breakthrough － one that should be spearheaded by China.
Xi’s statement came just after the Political Bureau of the CCP Central Committee published its 18th study of blockchain technology.
When he pointed out the virtues of blockchain in front of the Politburo, the Chinese president caused an unexpected rise in Bitcoin prices. The timing couldn’t be better, as Thursday saw a dramatic sell-off, causing the cryptocurrency to experience a fall in prices from over $8,000 to just $7,500 over a period of three hours.
The crisis proved to be short-lived, with Bitcoin recording a 2% increase since Xi Jinping’s announcement. Since then, Bitcoin has partially recovered, reaching a price of $7,652. Other major cryptocurrencies experienced growth from 1% to 5% in the aftermath of the speech, with Bitcoin SV surging to a 15% rise.
Although the news comes as reassuring to cryptocurrency investors, experts agree that the overall crypto market is still suffering a slowdown. Bitcoin’s recent poor performance has caused the number one cryptocurrency in the world to lose 4% of its value in a few days, exacerbating the 20% nosedive recorded over the past several weeks.