Over the last week, Bitcoin has been consolidating around $10,700 levels. Interestingly, the world’s largest cryptocurrency has been holding its position resiliently despite some negative news like BitMEX’s CFTC charges leading to an erosion of 32,000 BTC from the exchange.
However, there’s been a spike in new participants coming to Bitcoin clearly indicated by a spike in new Bitcoin addresses. We are typically seeing 5-10K new Bitcoin addresses every day. However, there was an interesting breakout last week with a new BTC address shooting above 22k. Well, if this has to indicate something, Bitcoin might be setting up the stage for its next bull run.
While this is certainly an interesting development for the Bitcoin community, there’s something more to it than what meets the eye. An interesting analysis presented by Cole Garner suggests that all these Bitcoin addresses are coming from CHINA. Yes, there seems to a healthy purchase volume coming from China that has been supporting the BTC price last week despite not so positive news in the market.
You might be wondering that China has banned crypto for a long time and why this move suddenly? In fact, the recent actions by the Chinese governments suggest that there coordinated effort and marketing campaign to tickle Chinese investors’ minds towards crypto. Meaning the Chinese government is looking to trigger the next bull run.
Hmm this is an interesting propaganda vibe from CCP’s official media outlets as “参考消息”, Xinhua and CCTV2
the headline “cryptoasset is the best performing asset YTD” was featured on all avenues, news paper, online media and TV
It’s rare for such a coordinated effort pic.twitter.com/2g6VDsV5SE
— Dovey 以德服人 Wan ???????? (@DoveyWan) September 25, 2020
China’s Hidden Interest In Bitcoin
It’s a known fact that China is home to some of the largest Bitcoin mining activity in the world. Since it controls Bitcoin mining, it also holds the largest BTC than any other country on the planet. Mr. Garner notes that the Chinese leadership will promote any narrative that suits their interests in the best possible manner.
We also know that China is looking at just one big opportunity that can make it the global economic leader topping the U.S. So if Bitcoin can help it to get the position of economic power, why not? Moreover, global financial institutions have been leaning towards Bitcoin with an uncertain economic outlook. Hence, China won’t be willing to lose the place where it has a strong footing.
Besides, Garner also attributes the latest surge in Tether’s USD printing to China’s marketing campaign.
10/ The recent explosion in #Tether printing might have been a leading precursor to China's marketing campaign.
— Cole Garner (@ColeGarnerBTC) October 5, 2020
Thus, Garner suspects that China’s latest retail buying interest has helped Bitcoin sustain last week’s bearish news. While retail buyers are not the market movers, the offer clear signals of big moves in the bull market.
Bitcoin to hit $1 Trillion Market Cap by 2020
BTC price prediction is nothing new to the market. However, there’s a growing chorus among analysts for Bitcoin’s next bull run. Blockstream analyst Adam Back recently said that Bitcoin will hit $1 trillion in the next two years by 2020. With the current market cap around $200 billion, the BTC price will fivefold from here somewhere around $50,000.
— Adam Back (@adam3us) October 5, 2020
Bloomberg’s latest crypto outlook report also suggests that the Bitcoin price will touch the $100,000 mark in the next years i.e. $2 trillion in market cap. Bloomberg Intelligence analyst Mike McGlone said:
“Considering normal maturation, about double the time frame from $1,000 to $10,000 would come in around 2025, for Bitcoin to potentially add another zero.”