Beware: Bullish Bitcoin Case Could Be Due To CFTC Scramble

Beware: Bullish Bitcoin Case Could Be Due To CFTC Scramble

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— Mr Parabolic (@iLiquidatebots) October 6, 2020
— Cole Garner (@ColeGarnerBTC) October 5, 2020

Respected Bitcoin Analyst Sheds Light On Bullish Case From China

The fact that the leading cryptocurrency by market cap has held up this strong, could be a sign of the halving supply slash taking effect, or it could be another fact that Bitcoin analyst Cole Garner has recently brought to attention.
While the idea is plausible, and the crypto asset failing to return under ,000 could back up the theory, analysts could be overlooking another clear reason for a sudden sharp increase in non-zero BTC wallets.
Instead, Bitcoin is now trading higher today than where the tiny initial selloff took it at first. Market participants expected more downside following this news, the fact KuCoin was hacked, and the United States President contracted Covid19.
RELATED READING | THIS UNUSUAL BITCOIN ADOPTION METRIC SETS NEW ATH
The explosion in Chinese retail buyers taking heed of that message, Garner explains that could be behind both the increase of non-zero BTC addresses and the recent price resiliency. However, there could be a more obvious reason.

Garner believes there’s a financial incentive for the Chinese government to encourage growth in the Bitcoin mining industry, which is dominated by the country. In turn, the Chinese government could be aiming to spark a bull run in cryptocurrencies to further boost this booming industry.
BTCUSD Weekly – Is China Retail Buying Behind The Bitcoin Breakout? | Source: TradingView

But Is The Boost In BTC Wallets From BitMEX Users Scrambling?

Garner says that new BTC addresses were “of the charts” last week, and it could very well be due to the CCP broadcasting messages over state-run media, encouraging the purchase of cryptocurrencies. These mentions called out the asset classes’ performance compared to the rest of mainstream finance amid the pandemic and more.
Featured image from DepositPhotos, Chart from TradingView

As much as I’d love to run with this, it’s a good lesson in confirmation bias. A simple counter answer could simply be users leaving exchanges due to increased SEC activity. I personally moved assets off to 3 new addresses on my ledger this week. $btc https://t.co/ngVqaj50XJ
RELATED READING | ONE THREAT COULD OVERTURN OVERWHELMINGLY BULLISH BITCOIN SENTIMENT IN Q4

1/ New #bitcoin addresses were absolutely off the charts last week.
The backstory is bullish and intriguing — a unique view on a new bull market catalyst.
A new narrative has suddenly spread across the crypto market potentially presenting a bullish case behind Bitcoin’s recent resiliency. The reason? A possible retail buying frenzy in China spurred by the Chinese government themselves.
Last week, a triple threat of negative news should have shocked the crypto market, but instead, it barely dented the price of Bitcoin. In the past, news that the CTO of BitMEX was arrested and the CFTC was targeting the popular derivatives exchange would have been enough to tank the price per BTC.

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