Crypto Markets Rally to Start Asian Trading as Bitcoin Demand Shifts to Hong Kong
Crypto markets swung higher at the start of Monday trading, with bitcoin cash rebounding from two-week lows and XRP returning above a key long-term support. Bitcoin was back in a stable trading range after the market rejected another attempt to overtake $12,000.
Crypto Market Update
All of the top-15 coins reported gains at the start of the Asian session. Among the majors, bitcoin cash was the top performer, gaining 6% to $335.93. The fourth-largest cryptocurrency by market cap has recovered around 9% from Saturday’s swing low, which also happened to be a two-week bottom.
XRP clawed back above the 30-cent mark and was last up 1.2% at $0.3019. It had traded as low as $0.2932 on Saturday. The decline pushed XRP closer to the next major support zone located at $0.28. A breach of that level would have set Ripple’s currency on track for a steep fall.
Litecoin’s price briefly returned above $90 before backtracking slightly. The no. 5 coin was last up 4.4% at $89.53.
Like the rest of the majors, Ethereum swung sharply lower at the start of the weekend, coming within a few dollars of $200, a level it hasn’t seen in almost three months. At the time of writing, ether had gained 4% to $215.57.
As far as bitcoin goes, the price is holding steady just below $11,500. The coin reached a low of $11,080 on Bitstamp earlier in the day. Despite the modest uptick, bitcoin is carving out a path of lower lows after failing to break $12,000 convincingly for the second time in a month.
The combined value of all coins in circulation was a hair below $300 billion, according to CoinMarketCap. Bitcoin’s dominance is 68.6%, which is slightly below the recent high near 70%.
Are Hong Kong Protests Fueling Crypto Demand?
With Hong Kong entering its tenth week of demonstrations, some analysts believe that cryptocurrencies could play a major role in the Special Administrative Region moving forward. As Forbes recently pointed out, young protestors are refusing to use centralized payment methods to maintain their anonymity and ensure that local governments can’t track their participation in the demonstrations.
“Cryptocurrencies and Bitcoin were built to address several of the most pressing points in the Hong Kong protests, which are at the forefront of what it means to protest against a state equipped with all of the sophisticated technologies of the 21st century and the unrestrained ability to weaponize those capabilities against its citizenry,” wrote Roger Huang in an article that was published Sunday.
Although the protests were originally centered on proposed extradition legislation that would have made it easier to hand over accused prisoners to Mainland China, they have evolved to include other grievances as well. Since June, Hong Kong residents have also been demonstrating against the excessive use of force by local police, which has designated the protests as “riots.”
In the meantime, the price of bitcoin and other cryptocurrencies have a hefty premium on Hong Kong exchanges. At last check, the quote price for BTC/USD was $12,000 on TideBit, a Hong Kong-based exchange.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.