Bitcoin Wave Rises Again in China
Congress Meetings
This week is very important to the price of Bitcoin because the Communist Party of China 19, which will take place in China. The National Congress can change the fate of Bitcoin.
These elections have the effect of changing the balance of power between the conservative wing and the progressive wing.. Bitcoin is used as an important pawn in the midst of all these events.
Political Showdown
These elections are held every 5 years to elect the top statesmen of the party.. At the same time, this meeting functions like a political competition between the parties.. Conservative side; While setting goals such as maintaining the old system, maintaining central planning and state ownership, controlling key industries (including banks), the progressive party advocates reducing government influence on the economy and property.
“Bitcoin Conservative traditionalists didn’t like it at all, while the progressive group had just become sick and attractive.. For most people, the initial ban on Bitcoin was a show of strength for the traditionalists”
There has been a similar conflict in the past.. 18 made in 2011. As a result of the congress, Chinese Companies gained the right to list their shares on the US stock exchanges -by a reverse merger-.
Later, it was decided that this was an unsuccessful move as the share values of Chinese internet companies fell.
18 Congress meetings that will start in October may cause great fluctuations in Bitcoin price. It is possible to ban cryptocurrencies completely, as well as the possibility of removing regulatory laws.
Hard Fall
Bitcoin price dropped dramatically when China first banned ICOs and then cryptocurrency exchanges.. These decisions pushed the prices circulating at $5100 to $3100. But Bitcoin price has recovered and surpassed its old record.. Although rumors spread that the bans are temporary, if the conservatives win, there may be more violent fluctuations than before.
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