There is no denying that China and other major countries can have an enormous impact on the price of Bitcoin and alternative coins. This was evident yet again when the price of Bitcoin soared to a new record high over the weekend. The new record price for Bitcoin is $6,306.58!
This phenomenon follows rumours that China is thinking twice about its so-called ban on cryptocurrencies and the trading of the virtual currencies. The new record price is $200 higher than Bitcoin’s previous record price of $6,148.82. Bitcoin reached $6,148.82 about a week ago upon the implementation of Segwit2X.
According to online news site, Coin Telegraph, the decision to possibly cancel certain ‘temporary regulations and policies’ was made during China’s 19th National Congress of the Communist Party. Among these ‘temporary regulations and policies’ is the ban on Bitcoin trading.
At the same event, it was announced that a new trading platform for cryptocurrencies will also be launched very soon in China. The new site will be called ZB.com and went live today. Even though it is a China-based site, the site will be open to anyone, anywhere in the world to trade on.
In recent months, China was not very popular among the cryptocurrency community. It was announced that China banned Initial Coin Offerings (ICOs) and in September opted to ban Bitcoin exchanges in the country. Various reasons were given for this dramatic decision, such as a direct threat to the current fiat currency, alleged money laundering and regulatory issues.
Since the ban on ICOs and the rumour of the ban on Bitcoin, the mining community has also felt the impact and consequently some have sold their mining equipment and hardware. In the same way, the price of Bitcoin was heavily impacted by these announcements and it created a lot of chaos and concern amongst crypto currency investors.
However, this period of uncertainty was short lived, as the announcement of Segwit2X and free money aka Bitcoin Gold started making the rounds.
There is no doubt that should China’s ban on the trading of cryptocurrencies be lifted, the price of Bitcoin is likely to increase even more. This will not happen overnight though.