Bitcoin has jumped in six minutes from $7,800 to $8,500 after rising since yesterday’s low of circa $7,400.
That’s on increased volumes with the price fall earlier this week now pretty much canceled.
What caused this rise is not too clear with quite a few candidates as a number of things seem to be moving.
First of all, many think the fall earlier this week was due to the October bitcoin futures contract on CME expiring.
That happened at 4PM London time earlier today, with the above jump being 45 minutes after the contract expired.
Secondly, foreign exchange markets might be thinking they may have been a bit too optimistic on Brexit as the deadlock continues.
Thirdly, Bakkt volumes have increased to 700 bitcoin a day which might suggest there’s institutional interest in actual bitcoin holdings.
Fourth, social indicators suggest we may have reached a local low based on the previous interaction between online chatter and price.
And fifth, the president of China Xi Jinping has endorsed the blockchain in a move that may have implications on Congress’ attitude towards Libra, as well as on potential bets that China might once again warm up to this space.
Chances they’ll re-open crypto exchanges remain very slim, with the focus primarily on the blockchain, but perhaps they are less slim than they were.
In addition, this full endorsement and even praise for the blockchain might change attitudes in other jurisdictions due to potential strategic implications.
The rough translation of a report on the matter by Xinhua, an official Chinese paper, is presented in full to state as follows:
“Xinhua News Agency, Beijing, October 25th: The Political Bureau of the Central Committee of the Communist Party of China conducted the 18th collective study on the status quo and trend of blockchain technology development on the afternoon of October 24. Xi Jinping, general secretary of the CPC Central Committee, emphasized that the integrated application of blockchain technology plays an important role in new technological innovation and industrial transformation. We must take the blockchain as an important breakthrough for independent innovation of core technologies, clarify the main direction, increase investment, focus on a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation.
Chen Chun, a professor at Zhejiang University and an academician of the Chinese Academy of Engineering, explained the issue and discussed opinions and suggestions.
The comrades of the Political Bureau of the CPC Central Committee listened carefully to the explanations and discussed them.
Xi Jinping delivered a speech while presiding over the study. He pointed out that the application of blockchain technology has extended to digital finance, Internet of Things, intelligent manufacturing, supply chain management, digital asset trading and other fields. At present, major countries in the world are accelerating the development of blockchain technology. China has a good foundation in the field of blockchain. It is necessary to accelerate the development of blockchain technology and industrial innovation, and actively promote the development of blockchain and economic and social integration.
Xi Jinping stressed that it is necessary to strengthen basic research, enhance the original innovation ability, and strive to let China take the leading position in the emerging field of blockchain, occupy the commanding heights of innovation, and gain new industrial advantages. It is necessary to promote collaborative research, accelerate the breakthrough of core technologies, and provide safe and controllable technical support for the development of blockchain applications. It is necessary to strengthen the research on blockchain standardization and enhance the right to speak and rule in the world. It is necessary to speed up industrial development, give play to market advantages, and further open up the innovation chain, application chain and value chain. It is necessary to build a blockchain industry ecology, accelerate the deep integration of blockchain and frontier information technologies such as artificial intelligence, big data, and Internet of Things, and promote integrated innovation and integration applications. It is necessary to strengthen the construction of the talent team, establish and improve the personnel training system, build a variety of high-level talent training platforms, and cultivate a group of leading figures and high-level innovation teams.
Xi Jinping pointed out that it is necessary to seize the opportunity of blockchain technology integration, function expansion and industry segmentation, and play the role of blockchain in promoting data sharing, optimizing business processes, reducing operating costs, improving synergy efficiency, and building a credible system. . It is necessary to promote the deep integration of the blockchain and the real economy, and solve the problems of difficulty in financing loans for SMEs, difficulties in controlling the risks of banks, and difficulties in departmental supervision. It is necessary to use blockchain technology to explore digital economic model innovation, provide power for creating a convenient, efficient, fair and competitive, stable and transparent business environment, and provide services for promoting supply-side structural reforms and realizing the effective docking of supply and demand in various industries, in order to accelerate new and old kinetic energy. Provide support for continuous transformation and promote high-quality economic development. It is necessary to explore the application of “blockchain+” in the field of people’s livelihood, and actively promote the application of blockchain technology in the fields of education, employment, pension, precision poverty alleviation, medical health, commodity anti-counterfeiting, food safety, public welfare, social assistance, etc. The masses provide more intelligent, more convenient and better public services. It is necessary to promote the combination of the underlying technical services of blockchain and the construction of new smart cities, explore the promotion and application in the fields of information infrastructure, smart transportation, energy and power, and improve the level of intelligence and precision of urban management. It is necessary to use blockchain technology to promote greater inter-connectivity between cities in terms of information, capital, talents, and credit information, and ensure the orderly and efficient flow of production factors within the region. It is necessary to explore the use of the blockchain data sharing model to achieve the joint maintenance and utilization of government data across departments and regions, promote business synergy, deepen the “run-up once” reform, and bring better government service experience to the people.
Xi Jinping emphasized that it is necessary to strengthen the guidance and regulation of blockchain technology, strengthen the research and analysis of blockchain security risks, closely track development trends, and actively explore development laws. It is necessary to explore the establishment of a safety guarantee system that adapts to the blockchain technology mechanism, and guide and promote blockchain developers and platform operators to strengthen industry self-discipline and implement safety responsibilities. It is necessary to implement the rule of law network into the management of blockchain and promote the safe and orderly development of blockchain.
Xi Jinping pointed out that relevant departments and their responsible leaders should pay attention to the status quo and trend of blockchain technology development, improve the application and management of blockchain technology capabilities, and enable blockchain technology to build a network power, develop digital economy, and promote economic and social development. The aspect plays a greater role.”