- The influence China is going to have on the digital market with fresh interest is still unclear.
- Bitcoin is gradually presenting itself as a safe haven amid political turmoil in the US and Hong Kong.
The recently released SFOX research team’s report dives into some of the major cryptocurrencies including Bitcoin, Ethereum, Bitcoin Cash, Bitcoin SV and Ethereum Classic. The report took into account the price, volume and volatility of these assets. Under the scope of the report is also the fresh interest of China into blockchain and related projects.
“Based on our calculations and analyses, the SFOX Multi-Factor Market Index, which was set at neutral a month ago, has been moved to mildly bullish as of November 11th,” the report begins.
The mildly bullish trend ahead of the holiday season has been brought about by new regulations, new products such as Bitcoin futures. Futures trading has particularly been gaining traction in the last few months. Moreover, China is positioning itself at the forefront of blockchain technology support. The support comes ahead of the launch of the country’s central bank-backed cryptocurrency. Analysts believe that investors are looking for a safe haven in the crypto market amid brewing political turmoil in Europe and the US. Commenting on China’s support for blockchain, the report said:
“It is unclear whether or to what extent this commitment to blockchain technology entails a similar commitment to cryptocurrencies, which may be why there weren’t similar price increases when it was recently announced that China would no longer be cracking down on BTC mining (November 6th) and that the Hong Kong monetary authority is researching the applications of a central bank digital currency (November 7th).”
Moving forward, SFOX says that the impeachment motions in the US and the political unrest in Hong Kong are likely to be drivers for Bitcoin price in the coming weeks. If the instability continues, investors will continue looking towards Bitcoin and other digital assets for safe havens.
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