Editor's PiCK
[Analysis] "Bitcoin, similar pattern to 2019 China shock... an emotional rally"
Summary
- Claims have emerged that the recent Bitcoin uptrend is similar to the 2019 Xi pump period.
- At that time, Bitcoin surged after China's announcement supporting blockchain technology, but subsequently crashed following increased regulations.
- Considering the precedent of sharp rises followed by crashes driven by market sentiment, investors need to exercise caution.
Amid significant volatility in the cryptocurrency market including Bitcoin (BTC) over the weekend, some are claiming that the current uptrend shows similarities to patterns seen in 2019.
According to cryptocurrency media outlet Cointelegraph on the 3rd (local time), cryptocurrency influencer ColdbloodedShiller, who has 330,000 followers, announced through his X (Twitter) that "the current rally, dubbed the 'Trump pump,' is similar to the 2019 'Xi pump'."
The Xi pump refers to an event in October 25, 2019, during a cryptocurrency bear market, when Bitcoin prices surged significantly after Chinese President Xi Jinping announced support for blockchain technology. However, China subsequently cracked down on cryptocurrency mining and other activities, causing Bitcoin to plummet.
ColdbloodedShiller warned, "During the 2019 Xi pump, the market recorded an emotional rally due to a series of news. Even when China strengthened regulations on cryptocurrencies, the market couldn't accept it at face value, and eventually recorded new lows after a few weeks."
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
