The cryptocurrency market is poised for a mildly exciting turn, according to crypto prime dealer SFOX, a cryptocurrency trading platform that caters to “professional traders and institutional investors.”
In a monthly volatility report released on Friday, SFOX explained that its position on the crypto market has gone from “neutral” to “mildly bullish,” following growing enthusiasm for blockchain technology from China, increased regulatory clarity in Hong Kong, and Bitcoin whale movements.
The report analyzed market data from eight large exchanges—bitFlyer, Binance, Bitstamp, Bittrex, Coinbase, Gemini, itBit, Kraken—and liquidity providers for six crypto assets—Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Bitcoin SV, and Ethereum Classic—over the past six weeks.
So how come the needle is swinging in favor of a bull market?
Bull in a China shop
The report found that China’s recent proclamations toward blockchain have boosted the market—even though China’s position on cryptocurrencies is less than clear. When President Xi Jinping told the Politburo Committee at the end of October that blockchain is an important technology worth investing in, Bitcoin’s price rose 42 percent over the next two days—from $7,448 to $10,610. SFOX found that Bitcoin’s volatility, too, jumped—from 43 percent to 70 percent.
Pro-Chinese sentiment was backed up by further developments. China also extended its blockchain financing project to 19 provinces and ruled out a Bitcoin mining ban.
China, according to SFOX, has “the potential to significantly affect the BTC mining landscape and how the industry chooses to advance itself in both China and the U.S.” Late last month, Chinese mining firm Canaan Creative also filed for a US IPO, which it hoped would raise $400 million.
Bitmain, Canaan’s rival, announced it had filed an application of its own, with the hopes of raising between $300 and $500 million. “If these IPOs end up happening, they would…