Best Weekend for BTC InvestorsOct 28, 2019
At the beginning of last week, we noted the BTC growth potential against the background of a stable demand increase for equipment for mining BTC. Recently, it was a pre-order for more than 500 thousand AvalonMiner A10 and A11 devices. At the same time, the Chinese company Canaan Creative, the world’s second largest mining equipment producer, plans to sell more than a million bitcoin miners in 2020. Since the average cost of AvalonMiner A10 and A11 significantly exceeds the mark of $1000, we are talking about multi-billion dollar investment in this industry.
As a result, at the end of last week, the BTC/USDT pair updated its highs at around 10,370, reaching its highest level since mid-September of this year. At the same time, it is important for traders and investors to monitor the price movement dynamics near the 9 100 – 9 300 support area, since the quotations return to the marked price range will indicate not only the weakness of buyers, but also can confirm the sellers’ willingness to resume decline in the long term.
At the beginning of last week, we discussed the ETH/USDT sellers’ weakness and, as a result, the risk of the bullish price movement resumption in the range of $222- $240. On Friday, October 26, buyers came close to the psychological level of $ 200, which breakdown will allow them to expect further growth to $222.
One of the cryptocurrency market‘s growth drivers was a Chinese President Xi Jinping speech in support of blockchain technology. As a result, the number of search queries on WeChat for the word “bitcoin” more than doubled. At the same time, the number of requests for the word “blockchain” increased by almost 12 times.
No less impressive statistics were provided by Primitive Ventures managing partner Dovi Wang. We are talking about a multiple increase in the requests number, related to the cryptocurrency market and blockchain. According to the observations of analyst Alex Krueger, the dynamics of relevant search queries also began to grow sharply in the USA (Google + 233% (USA), Baidu + 200%, WeChat + 145%).
The rapid interest’s growth in the cryptocurrency market and blockchain technology was reflected in the main coins value and, as a result, in the whole market capitalization.
Cryptocurrency Market Capitalization
Just a day before the President Xi Jinping statement, we noted that investors weren’t ready to get cryptocurrencies rid, as indicated by an unusually slow capitalization decrease after breaking the critical $200B level.
“All this indicates that large investors aren’t ready to withdraw capital from the cryptocurrency market, which means that the next medium term growth’s wave cannot be ruled out.” – from our previous review.
As a result, we observe more than 25% growth in market capitalization. In this case, the main scenario still takes into account a further increase in demand in the long run.