Bitcoin Price Goes Crazy as Chinese Stocks Tank

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  • Bitcoin flirted with the $8,600 level on heels of the Chinese stock market crash before retracing all recent gains

Bitcoin Price Goes Crazy as Chinese Stocks Tank
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Bitcoin has had a few very volatile hours after Chinese stocks took a huge hit this Monday. The leading cryptocurrency skyrocketed above $9,600 before shedding all of its recent gains.  

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Bitcoin responds to China's stock market crash    

The Chinese stock market was closed on Jan. 23 during the Lunar New Year. On Feb. 3, the Shanghai Composite plunged by 8.2 percent because of the coronavirus outbreak. However, this crash could have been much worse if China hadn't injected a whopping 1.2 trln yuan ($173 bln) to mitigate the imminent virus-driven market shock. 

Following the opening of the Chinese stock market, Bitcoin almost instantly skyrocketed to its new yearly high of $9,615. However, these gains have been swiftly trimmed, and BTC rapidly dropped to an intraday low of $9,251. At press time, the top coin is changing hands at $9,411 after more buyers stepped in. 

Bitcoin
image by tradingview.com

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Bitcoin could "explode" in value 

Despite these nasty bouts of volatility, some experts believe that Bitcoin could surge to a much higher level in 2020. Jehan Chu of Kenetic Capital expects assets like BTC "to explode in value" due to deteriorating trust in global markets. 

"As trust in global institutions and markets continues to deteriorate, we will see highly mobile digital assets like Bitcoin explode in value," Chu told Bloomberg.    

As reported by U.Today, Fundstrat's Tom Lee predicted that BTC could gain more than 100 percent this year.    

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.