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Bitcoin Price Catapults Near $9,000 with Triumphant 14% Rally

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  • The bitcoin price zoomed higher on Friday, reversing its punishing losses from earlier in the week.
  • Following a 14% rally, BTC now boasts a market cap of more than $150 billion.
  • Some observers have connected the move to Chinese President Xi Jinping’s recent comments on blockchain.

Despite a wave of bearish calls on social media in recent weeks, the bitcoin price is bucking the trend on Friday. The flagship cryptocurrency has skyrocketed back above $8,000 to set a two-week high at $8,784.

Currently trading just shy of $8,800, BTC may be in the process of bouncing off trendline support and creating a  technical formation known as a morning star.

The bitcoin price appears to have bounced off its trendline.| Source: TradingView

Bitcoin has been consolidating for the better part of October, but it nosedived around 8% on Wednesday. The tables have since turned, however, and at last review, the grandfather of crypto was up nearly 15%.

Buyers are piling on the bids in the US session. | Source: TradingView

Bitcoin Bulls Jumping on the China Bandwagon?

According to a report out of China earlier this morning, Chinese President Xi Jinping emphasized the use of blockchain technology as an important breakthrough for the country.

Twitter account @cnLedger broke the news of a collective study conducted by the Central Committee of the Communist Party.

China’s president is advocating for widespread use of blockchain technology. | Source: Twitter

Xi stressed the need for increased research, a focus on innovation, and for China to take the lead in the emerging field of blockchain.

The news is timely, but it’s unclear yet whether this is the major underlying cause of today’s price surge. The bulk of bitcoin buyers are riding the wave in the US session after digesting the news.

Global macro analyst and trader Alex Krüger is not convinced of the underlying fundamentals. He keenly notes that Xi’s crypto commentary is likely to benefit private blockchains more than anything else:

Analysts dispute the effect of Xi’s announcement. | Source: Twitter

China is well-known for keeping a tight lid on its financial matters, but it’s made no secret of its desire to digitize its currency.

Earlier this month, Ripple CEO Brad Garlinghouse warned that the US dollar may be at risk of being displaced, and Mark Zuckerberg told Congress that the US risks relinquishing a leading role in blockchain development to geopolitical rivals like China.

Disclaimer: The above should not be considered trading or investment advice from CCN.

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This article was edited by Josiah Wilmoth.