Chinese Promotion of Crypto Causes Spike in Bitcoin Addresses

Launched by Chinese government “coordinated marketing campaign” to support crypto may lead to massive spike in new Bitcoin addresses.

“Last week the Chinese government began a coordinated marketing campaign to focus Chinese retail investor psyche on crypto. Yes, this is really happening,” tweeted analyst Cole Garner.

The media campaign refers to cryptocurrency as ‘the best-performing asset of 2020.’ Garner highlighted record increase in new BTC addresses. He pointed out that just one day alone 22,000 new Bitcoin “entities” appeared, compared to the normal level 5,000 — 10,000 a day.

According to Garner, new addresses are a very important volume indicator, and Bitcoin price should follow it. “Volume, precedes price,” he wrote.

The Chinese campaign has also caught the attention of Dovey Wan, who described it as “curious.”

China has traditionally been seen as a hostile environment when it comes to consumers’ ability to engage with cryptocurrency. A ban from 2017 still remains in place, with transactions confined to over-the-counter, or OTC trades, despite mining activities openly continuing.