Statements by Chairman Xi Jinping were a major catalyst for renewed interest in Chinese cryptocurrencies. Cryptos such as TRON, NEO, and Ontology demonstrated strong 7-day returns following Xi’s comments, but this newfound momentum appears unsustainable.
The Chairman’s statements on blockchain were the initial spark that drove renewed interest in Chinese crypto projects. Other developments from China proceeded to maintain the momentum: progress on its digital currency, cryptocurrency education, and increasing interest in investing in blockchain technology. As sentiment in China improved, prices for Chinese-based blockchain projects surged.
Price Gains of Chinese Cryptocurrencies and BTC since Oct. 24, 2019
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As evidenced by the chart, the Return On Investment for all the projects under consideration was higher than Bitcoin’s. Bytom had by far the best return, but projects like Ontology, NEO, and IOST beat BTC by 25% or more.
However, new money appears unconvinced by the Chinese narrative. Recent price growth from Xi’s statements look unsustainable. The initial hype that propelled the projects is dying down. Even though they resumed climbing after a recent retracement, the rest of the market seems exhausted — evidenced by Bitcoin’s price action.
Price Gains of Chinese Cryptocurrencies and BTC since Nov. 9, 2019
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