SFOX, which has a trading centre for crypto currencies, stated in a monthly report on Friday that its market position has risen from “neutral” to “slightly bullish” as enthusiasm for block-chain technology from China, regulatory clarity in Hong Kong and Bitcoin whales’ actions have increased.
Outlook for the current crypto market: slightly bullish
Starting from the eight large crypto exchanges bitFlyer, Binance, Bitstamp, Bittrex, Coinbase, Gemini, itBit, Kraken and Liquidity providers for six crypto asset Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Bitcoin SV and Ethereum Classic, the market data was analysed over the last six weeks.
The report shows that China’s recent announcements to Blockchain have boosted the market. According to SFOX, China has “the potential to massively influence the BTC mining industry and the way the industry chooses to develop in both China and the US”.
It is suggested that the increasing political instability in both Hong Kong and the United States could lead to Bitcoin due to “widespread computer and financial literacy”.
The SFOX statement refuted more general assumptions about Bitcoin as a “safe haven” in the event of riots. Chile’s political protest led to massive acts of violence last month, leading to an increase in Bitcoin trade in Hong Kong after mass protests. However, the report noted that “the increasing trend of political upheaval does not seem to have a clear impact on the crypto market as a whole”.
SFOX believes that volatile price movements are due to whales after the Bitcoin price fell nearly 20 percent on the night of October 21st and rose 30 days later. In theory, the movements were either a cause or a reaction to general market volatility.