A week ago, Xi made comments in support of blockchain technology. This led to a buying frenzy of Chinese altcoins such as TRON, NEO, and Qtum. Xi said that China should be a leader in the blockchain space. A few days later, China passed cryptography law, in anticipation of China’s release of a central bank-backed digital currency. This could be a sign that the coin will launch in the next few months, despite recent media reports indicating there was no set date for the release of the coin. The move was so swift that it took the market about two days to react to it.
The Chinese Altcoin Pump
Over the weekend, major Chinese altcoins saw unprecedented price increases. The rally lasted until Monday morning before traders began profit taking. For instance, NEO saw a 46% price increase against the USD in the two days after the Chinese cryptography law was passed.
This was the same for Qtum. In its USD base pair, the coin surged about 50%. Against BTC, the coin surged by over 40%. TRON also saw its price rise. Against the USD, the price rose by more than 30%.
Some crypto experts have claimed that the rise of Chinese coins in the last few days was based purely on hype and speculation. However, Alex Kruger, a trader, and an economist does not believe that hype is the only reason for the price pump. If this continues, it could potentially help to get the altcoin market out of its current bear run. When this happens, it will largely be due to recent positive moves by the CCP in the cryptocurrency market.