- China blames the west for creating a highly-leveraged Bitcoin market that is full of manipulation.
- China expects sovereign countries to declare Bitcoin as “illegal” in the future which is when it will collapse to ZERO.
While the broader cryptocurrency market tanks under $1 trillion, China is capitalizing on its anti-Bitcoin stand. China’s State-run newspaper Economic Daily recently stated that Bitcoin investors should maintain extreme caution while predicting that the world’s largest crypto is “heading to zero”.
This comes as part of Beijing’s continued efforts to dissuade its citizens from participating in crypto. Interestingly, the Chinese state-run media blames the west for creating a highly-leveraged market “full of manipulation and pseudo-technology concepts”. The Economic Daily noted that this was an “important external factor” contributing to the Bitcoin price volatility. As reported by the South China Morning Post (SCMP), the Chinese media stated:
Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high. In the future, once investors’ confidence collapses or when sovereign countries declare Bitcoin illegal, it will return to its original value, which is utterly worthless.
China has completely outlawed any kind of crypto-related activity taking place in the country. This includes banning crypto trading, mining, fundraising, and much more.
In a separate warning earlier this week, the Financial Regulatory Bureau of Shenzhen said that cryptocurrency can severely endanger people’s “property security”. Crypto can further breed criminal activities while disrupting financial order as per the Bureau.
Last weekend, the Bitcoin price tanked under $18,000 amid strong miner capitulation. Bitcoin miners have been selling their BTC holdings in huge numbers to cover operational costs. Also, the “Bitcoin Dead” Google searches shop up to its all-time high.
Google searches for "bitcoin dead" hit all time highs over the weekend. pic.twitter.com/oDXNqGEeIL
— Alex Krüger (@krugermacro) June 20, 2022
Bitcoin optimism in the West
While China has been pushing its anti-Bitcoin stand, not everyone in the market has lost hopes for Bitcoin. The Bank of England (BoE) sees an underlying upside potential and an opportunity to build wealth presented by the bear market. Speaking to Bloomberg on Wednesday, Deputy Governor for the BOE Jon Cunliffe shared some positive views.
He said that crypto firms that managed to sail through the current downturn could emerge as “dominant players” in the industry. Cunliffe added:
Whatever happens over the next few months to crypto assets, I expect crypto technology and finance to continue. It has the possibility of huge efficiencies and changes in market structure.
The Bitcoin price continues to hover around $20,000 and could be entering a long consolidation phase. Analysts are wondering whether the Bitcoin bottom formation has already happened. However, some believe that Bitcoin can go further down amid the uncertainties in the global macro situation.
Absolute Strategy Research CEO, Ian Harnett expects Bitcoin to bottom at around $13,000. Billionaire investor Mark Mobisu also expects further downside in the BTC price. Speaking to Bloomberg, he said: Bitcoin investors “are still talking about buying on dips that means there is a feeling of hope. That also means that we have not reached the bottom of a bear market”.