Bitcoin has stayed stubbornly strong throughout the day as the end of October approaches, returning now to a somewhat narrow trading range between a daily low of USD 9,211 and a high of USD 9,555 (CoinDesk).
After yesterday’s swings it suggests a return to some normalcy. But it does hide some volatility under that seemingly stable price range, however, with wild fluctuations still happening especially in Asian markets when price dipped steeply from above USD 9,450 to the low, reminding us of how quickly things can change with Bitcoin markets.
For now, however, price action is telling us little, except that it could be consolidating for a renewed push to retake USD 10,000, or it is dwindling in bullish steam to return to the bearish trends witnessed for most of the month. Some increased volume will be a welcome indicator for traders, though.
— Patrick Rooney (@patrickrooney) October 29, 2019
Total market capitalization for Bitcoin has now dipped just below USD 170 billion, but altcoins are still enjoying residual impact in general, with Ether slowly climbing back up above USD 185 and Tron (TRX) still managing to record 0.21 cents today.
With China news still reverberating around the industry (regardless of its actual impact and effect, if any on the current boom in Bitcoin price), the latest now to come out is state media now issuing warnings that Chinese citizens should definitely embrace blockchain, but not fall to the speculator hype surrounding crypto and digital assets.
Earlier today, BitcoinNews.com reported how online searches for “blockchain” and blockchain firms on popular Chinese messaging app WeChat had skyrocketed on the back of bullish comments from Chinese premier Xi Jinping, urging the nation to support the development of blockchain technology.
And now, it seems the intense public interest, and other major headlines the world over indicating that it was Xi’s comments that had spurred the latest boom in Bitcoin, may have triggered some knee jerk reactions from the official state media.
Beijing media the People’s Daily, controlled by the Communist Party of China, was quoted by Reuters as saying that people should not read Xi’s words as support for crypto, but merely the underlying technology. It urged to be calm and collected:
“Blockchain’s future is here but we must remain rational… The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies.”
Yesterday, China’s signing of a new piece of crypto legislation that would come into force in January 2020, governing several blockchain technology aspects, seemed to only fuel Bitcoin’s price rise action even more. As we have pointed out, however, China’s blockchain approaches are not new and many states have already begun trials into blockchain use in public services, with legal courts also recognizing the place of blockchain.
But crypto trading — Bitcoin specifically usually — is still banned in the world’s second-largest economy, and despite talks of digital yuan, there is little to suggest that this will change.
Meanwhile, crypto mining giant Bitmain is reportedly undergoing some seismic internal power struggles, as news emerged that the company had let go of a senior executive. If reports are true, the big boss himself, ex-CEO, current chairperson and co-founder Wu Jihan had ousted fellow co-founder Micree Ketuan Zhan.
An internal email translated by CoinDesk reads:
“Bitmain’s co-founder, chairman, legal representative and executive director Jihan Wu has decided to dismiss all roles of Ketuan Zhan, effective immediately.”
As Bitmain’s biggest shareholder, supposedly holding a majority 60% stake in the company, the sacking of Zhan is a major piece of news and suggests that there could be a shift in power, and perhaps direction for the equipment manufacturer.
Wu himself had suddenly stepped down as CEO almost a year ago in November 2018, and he warned in the internal email that existing employees should no longer recognize any authority from Zhan, on threat of expulsion: “Any Bitmain staff shall no longer take any direction from Zhan, or participate in any meeting organized by Zhan. Bitmain may, based on the situation, consider terminating employment contracts of those who violate this note.”
WOW THIS IS MORE DRAMATIC THAN I THOUGHT
Got this internal email from Bitmain where Jihan sent to the whole company, this is INTENSE
”Micree Zhan is dismissed from all operating positions from the company immediately. No one should take order from him or attend his meeting"👀 pic.twitter.com/aguM5Rzg1b
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) October 29, 2019
Private investor Dovey Wan, after reading the original email, suggests that Wu is returning to his company to “save this ship (from sinking)”
The last time Bitmain and Wu made the news constantly and in such terms was over two years ago at the height of the civil war between Bitcoin core developers and its detractors, including private mining companies like Bitmain, calling for a foundational change to its code to allow for bigger blocks.
The resulting difference of opinion led to the hard fork and the creation of Bitcoin Cash, which today gained 10% after the news of Zhan’s departure from the company.
Image Courtesy: Pixabay