This week, we saw Bitcoin explode almost 40% in value in just one day. It’s the third time ever when the price of BTC increased so much in 24 hours.
What happened? Here’s a compelling narrative:
That’s 1.4 billion people hearing about blockchain.
Although President Xi didn’t mention Bitcoin specifically, it’s still the first thing most people will think of when you say “blockchain.”
China embracing blockchain or Bitcoin won’t change anything in its fundamentals, so why did the price explode?
I guess it’s because the markets don’t care if an announcement has an actual effect in the real world. It cares about the possibility that everyone else will think this might be enough for others to buy the price up.
Alex Krüger explained it well:
I have to agree with him - this is precisely how you exploit an immature market.
Although the reasons behind the explosion are questionable, I think it’s a good sign that the price of BTC has stayed over $9K.
If you’re looking to read more about it, feel free to dive into this thread (click on the tweet to see the whole thing):