On October 25, Chinese official media Xinhua News Agency reported, "Blockchain is an important breakthrough in independent innovation of core technologies, we should clarify the main research direction, increase investment, focus on tackling a number of key core technologies, and accelerate the development of blockchain technology and industrial innovation." The report has attracted extensive attention from the Chinese public on blockchain and cryptocurrency as well as global media and markets.

China's new blockchain trend has sparked a rise in Bitcoin

Soon after the news, Bitcoin surged and recorded its fourth-highest one-day gain in history on Oct. 26, reversing its recent falling trend. Therefore, the rise of cryptocurrency driven by the new blockchain trend of China has become the focus of the major blockchain media around the world.

Many analysts believed the Chinese government's comments were directly related to the rising price of cryptocurrencies, the cryptocurrency media CCN said in its report. Bitcoin.com said in a cryptocurrency market analysis that the comment helped push Bitcoin past the death cross scenario.

Newsweek said the speech could signal to investors that a potentially large cryptocurrency consumer market could be opened up. China's development in the field of blockchain has attracted more and more international attention, and it has become an important force in the international market.

The impact on cryptocurrencies is not limited to Bitcoin, but also to Chinese Altcoins. After the release of the report, the prices of several Chinese cryptocurrencies, including Qtum, Vechain, Ontology, NEO, Tron and Bytom, all rose sharply.

Bitcoin price trend forecast

The market is also optimistic about the future trend of Bitcoin. Changpeng Zhao, the CEO of major cryptocurrency exchange Binance, says a price of $16,000 per Bitcoin will happen “soon-ish,” in a tweet sent on Nov. 1. He explains that price predictions are easy, but getting the timing right is hard. 

There are also more optimistic and aggressive forecasts. John McAfee, the father of antivirus software, doubled down recently on his $1M Bitcoin by 2020 prediction, arguing that Bitcoin’s next price surge will be triggered by its scarcity. Cryptocurrency analyst Roger Quantrillo recently said Bitcoin will reach $17,000 by the end of the year.

According to Cointelegraph, Bitcoin miners dug up their 18 millionth Bitcoin last month, meaning the only remaining 3 million will be circulated before mining stops as far away as 2140.

Currently, the price of Bitcoin in the day continued to be volatile with light trading. Investors should remain patient enough to wait for further clarity.

Disclaimer: the contents and views of this article are for reference only and do not constitute any investment advice.