Bitcoin held ground as Chinese President Xi Jinping expressed China’s interest to accelerate the development of blockchain technology.
Blockchain is a digital ledger that serves as the backbone of cryptocurrencies such as Bitcoin. On Thursday, Xi said that it should be the core of innovation in the world’s second largest economy.
Bitcoin BTC=BTSP soared 24% after Xi’s comments, closing $10,350 in its biggest two-day jump since December 2017. Other major cryptocurrencies such as ethereum ETH=BTSP and Ripple’s XRP XRP=BTSP also surged.
Bitcoin, the largest cryptocurrency by market capitalization, was down 1.6% at $9,403 in early London trading.
Despite trading being popular among Chinese investors, cryptocurrency exchanges are banned in China, leading these investors to account for major volumes on platforms elsewhere.
“The positive comments from the Chinese leader will continue to support the broader crypto prices to maintain at current levels, as China remains a major player when it comes to global crypto trading,” Andy Cheung, head of operations of OKEx said in an email.
Google searches for blockchain and bitcoin in China also surged after Xi Jinping’s comments, suggesting the peaked interest in cryptocurrencies.
“There have definitely been more conversations since the weekend,” Anthony Wong of Hong Kong-based crypto investment firm Orichal Partners said.
In recent months Bitcoin slid due to politicians and regulators criticizing Facebook’s planned cryptocurrency, Libra. Bitcoin lost one third since its highest in June this year as hopes on hastening mainstream acceptance of virtual coins through Libra surged.
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