The Chinese government has capitalized on the violent downturn in the cryptocurrency market by warning crypto investors that Bitcoin prices are “heading for zero.”
The South China Morning Post reported on June 22 that China’s national news media agency Economic Daily had issued a warning about the largest cryptocurrency by market capitalization to further deter citizens from adopting the use of cryptocurrencies. cryptocurrencies.
The Economic Daily report says that the West is to blame for creating a highly leveraged market that is “riddled with concepts of manipulation and pseudo-technology” which it said was a “significant external factor” contributing to Bitcoin’s volatility.
“Bitcoin is nothing more than a chain of digital codes, and its profits come mainly from buying low and selling high,” the newspaper said.
“In the future, once investor confidence collapses or when sovereign countries declare Bitcoin illegal, it will go back to its original value, which is worthless.”
The Chinese government banned Bitcoin mining last July and has big plans to launch its central bank digital currency (CBDC) called the digital Chinese yuan (e-CNY) across the country. It banned all cryptocurrency transactions last September and infamously banned foreign cryptocurrency exchanges from operating within the country in 2018.
The Chinese government is not the only one weighing in with predictions about where they see the price of Bitcoin going.
On Monday, the founder and CEO of market analytics firm DeMark Analytics, Tom DeMark, told Marketwatch that he believes the crypto market is in line for prolonged price declines because BTC has fallen below 50% since its peak. November $69,000.
“Such breakdowns indicate a high probability that Bitcoin’s recovery to all-time highs will require many years, if not decades, to achieve.”
However, there is still a chance it could rally into the $40,000 range in the coming months, he said.
“This does not negate the prospect of a recovery of up to 50-56% in the coming months, which implies that Bitcoin recovers the $40,000-$45,000.”
In contrast to warnings from Beijing, the Bank of England (BOE) has begun to see the upside potential of building wealth in the crypto space during a bear market.
BOE Deputy Governor Jon Cunliffe told Bloomberg on June 22 that crypto companies that manage to stay afloat during the current downturn could be the “dominant players” in the industry when things turn.
“Whatever happens in the next few months with crypto assets, I expect crypto technology and finance to continue. It has the potential for huge efficiencies and changes in market structure.”
Meanwhile, El Salvador President Nayib Bukele addressed the Bitcoin world on June 19 regarding the drop in BTC prices. He tweeted that people should “stop looking at the chart and enjoy life,” because he is confident prices will bounce back.
I see that some people are concerned or anxious about the #bitcoin market price.
My advice: stop looking at the chart and enjoy life. If you invested in #BTC your investment is safe and its value will grow immensely after the bear market.
Patience is the key.
– Nayib Bukele (@nayibbukele) June 19, 2022
President Bukele has been criticized for investing in cryptocurrency and suffering losses of tens of millions so far, but Finance Minister Alejandro Zelaya has argued that they are not losses “because we have not sold the coins.”
Related: Friday’s $2.25B Bitcoin Options Expiration Could Prove $17.6K Wasn’t BTC Bottom
At the time of writing, BTC is trading at $20,386, down 71% from its high and down 0.7% over the last 24 hours according to CoinGecko.
This post China warns that Bitcoin is headed for zero, but BoE sees the bright side
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