Bitcoin, Ethereum Surge Past $1.6T, Indicating a More Lenient Chinese Stance Now

Beijing, China, Tuesday, January 09 – Amidst a dizzying rally in Bitcoin, Ethereum, XRP, and Solana that pushed aggregate crypto market capitalization above $1.6 trillion, China signaled a potential departure from its hardline stance on cryptocurrencies, raising eyebrows and sending ripples through the global digital asset landscape. ¹

The shift emerged subtly through a government document recently published by the Ministry of Industry and Information Technology, dated August 4th but only made recently. ( MIIT People’s Republic of China: https://www.miit.gov.cn/zwgk/jytafwgk/art/2023/art_7eba1016ef5a4d98979b0167f38e4b35.html)).

While offering no guarantees about lifting the current ban on crypto trading, the document emphasized the “great importance” placed on the future development of the crypto industry.

This is a stark contrast to the sweeping ban China imposed in 2021, which sent shockwaves through the market and contributed to a significant price crash.

The document hints at a nuanced approach that focuses on harnessing the potential of blockchain technology, the underlying technology powering cryptocurrencies, within China’s borders.

Specifically, it highlights Non-Fungible Tokens (NFTs) and Decentralized Applications or dApps, as they are commonly known.

The document mentions promoting the development of NFTs, suggesting potential applications in areas like digital art and collectibles. China’s interest in blockchain-based dApps indicates a tentative embrace of the decentralized web (Web 3.0) and its potential benefits.

This renewed interest in blockchain resonates with the recent surge in major cryptocurrencies.

Bitcoin, Ethereum, XRP, and Solana have all witnessed significant price increases, collectively amassing a market capitalization exceeding $1.6 trillion.

Analysts said that this renewed momentum could have influenced China’s revised stance, prompting a shift towards regulation and controlled development rather than outright prohibition.

Sources