Bitcoin resumes gains on Chinese leader's remarks

Bitcoin rose in spot trading on Tuesday, to resume its gains after temporarily pausing yesterday, on profit-taking from a 5-week high, amid positive market sentiment following the Chinese president Xi Jinping's remarks about the blockchain technologies.

At Bitstamp exchange, Bitcoin rose by 3.9% or $357 to $9,573, after it opened at $9,216, with a session-low of $9,204.  

Bitcoin fell by 3.6% yesterday, its first loss in 4 days,  on profit-taking from a 5-week high of $10,350.

The total market capitalization of cryptocurrencies rose by $2 billion today, to a total of $253 billion, as Bitcoin and most other major cryptos rose.

Bitcoin dominance over the market trading held on Tuesday around 67.7% after a strong jump on Friday, from its 3-months low of 65.5% to 68.5% the highest since mid-September.

The strong jump is due to bears rushing to cover their short-positions, and bulls increasing their long-positions, after the Chinese president Xi Jinping's remarks about the blockchain technologies.

The Chinese President Xi Jinping has urged for accelerating the adoption of blockchain technologies to boost innovation and industrial transformation.

The president also said that his country will become a supporter of the crypto industry and will implement it in the economy.

Fundstrat co-founder, Tom Lee, said that there have been many signes lately that confirm Bitcoin's exit from the risk-on state to resume its bull market run.

Peter Schiff, CEO of Schiff Gold, said that the sharp rise in bitcoin had nothing to do with China or any major factor, but it is clearly a market manipulation by the crypto whales.

In the latest positive sign for the market, the volume of Bitcoin futures trading on Bakkt rose during the past three days, which indicates that the market activity has attracted the interest of institutional investors who expect a sharp directional movement.

In the latest positive sign for the market, the volume of the Bitcoin (BTC) futures contracts in the Bakkt platform rose in the last 3 days, which indicates that the crypto market has attracted more institutional investments.