The latest news in September showed that China contributed to the price drop of bitcoin and subsequently, the cryptocurrency market as a whole. This week, as we enter the middle of October, it seems as though China could potentially lower the price once more.
Chinese officials are set to gather later during October, as the opening of the 19th national congress is set to occur. This meeting happens every five years, and serves to elect the top officials throughout the country. It is also a place where the state will see whether or not they will go in a conservative, or liberal direction as time goes on. This has to do not only with the government, but with systems like the economy.
China serves as one of the largest market’s for cryptocurrency but especially bitcoin. This is part of the reason that a Chinese government could change the market entirely. When the Chinese government decided to ban initial coin offerings as well as shut down some of the largest cryptocurrency exchanges, it had an extremely adverse effect on the market. This took the currency from a high of $5,100 to a low price of $3,100.
The government claimed that they did this because of the illegitimacy within the market and the fact that there were a solid amount of illegal actions occurring within the cryptocurrency market as a whole. Looking at several Chinese internet companies that also fell in price along with the cryptocurrency price action, it seems like a ban was simply a bad idea.
The hopes are that the price action will remain stable as the meeting goes on, and the coin will continue to reach new highs as it has done in the past few weeks as a whole.