The start of the Chinese New Year has sparked a large chunk of Bitcoin enthusiasts to predict a volatility downturn.
The past week also saw major network updates in the Bitcoin industry with a JP Morgan spinoff project beginning a serious push into crypto. This occurred during a week when Bitcoin’s value fell by 10 percent.
Bitcoin had a low-performing week between January 21 and 27. The cryptocurrency lost its footing from the $9000 mark and was currently trading in the mid-$8000 range. Some Bitcoin enthusiasts have claimed that this dip may be because of the advent of the Chinese New Year. Even Bitmex CEO Arthur Hayes stated:
“The Year of the Rat starts this weekend. Time for bitcoin volatility and volumes to nose dive.”
The Bitcoin price fluctuation was a testament to the growing dominance of the Chinese market. Experts have stated that while the cryptocurrency may face losses in the short term, it’s long run will be greener.
Time Enneking, the managing director of Digital Capital Management has been one of Bitcoin’s most vocal supporters. He claimed that the downward price corridor of the past six months has been pretty solidly broken to the upside.
Although the price of Bitcoin was acting volatile, the rest of the industry seemed to be developing at a brisk pace. According to Chainstack, a Singapore based blockchain startup, there has been a massive increase in the number of people working in the fintech industry. Platforms like Hyperledger Fabric, Quorum and Corda have been the biggest employers in this case, resulting in a 12x growth.
This data was elucidated in a report titled ‘Enterprise Blockchain Protocols Evolution Index 2020’. According to the release, the number of engineers in the fintech industry grew to 28,000 between Q3 2016 and Q4 2019.
The industry is waiting to see how this information translates to developments in the industry. While the Bitcoin industry was still waiting for an influx of institutional investors, one company was taking matters into their hands. Just last week, two JP Morgan alumnus launched Kadena, a hybrid blockchain.
Kadena has been touted as the world’s first hybrid blockchain with the ability to give enterprises the power of a public blockchain with the security of a private chain. The Kadena founders have claimed that using their technology, allows organizations to work around the scalability issues of Bitcoin and Ethereum.