The Chinese government has used the violent cryptocurrency market collapse to warn crypto investors that Bitcoin (BTC) prices are “heading towards zero.”
The South China Morning Post reported the national Chinese news agency on Wednesday Economic Daily had issued a warning about the largest cryptocurrency by market cap to further discourage citizens from adopting cryptocurrency usage.
The Economic Daily report said the West is to blame for creating a heavily leveraged market “riddled with manipulation and pseudo-tech concepts,” which is a “key external factor” contributing to Bitcoin’s volatility.
“Bitcoin is nothing more than a chain of digital codes, and its returns come mainly from buying low and selling high,” the newspaper writes:
“In the future, if investor confidence collapses or if sovereign countries make bitcoin illegal, it will go back to its original value, which is zero.”
The Chinese government banned bitcoin mining last July and has big plans to roll out its central bank digital currency (CBDC) called Chinese Digital Yuan (e-CNY) across the country. It banned all cryptocurrency transactions and exchanges of foreign cryptocurrencies from operating in the country last September.
The Chinese government isn’t the only one making predictions about where they see Bitcoin’s price.
On Monday, the founder and CEO of market analytics firm DeMark Analytics said, Tom DeMark told Marketwatch that he believes the cryptocurrency market will be in a sustained price decline as BTC has fallen below 50% from its November peak of $69,000:
“Such declines indicate a high probability that it will take many years, if not decades, to recover from Bitcoin’s all-time highs.”
However, there is still a possibility that it could revisit the $40,000 area in the coming months.said:
“This does not negate the prospect of a recovery of up to 50-56% in the coming months, meaning Bitcoin will rebound to $40k-$45k.”
Contrary to warnings from Beijing The Bank of England has begun to see the upside potential of wealth creation in the cryptocurrency space during a bear market.
The Deputy Governor of the Bank of England, Jon Cunliffe told Bloomberg on Wednesday that if things change, cryptocurrency companies that manage to stay afloat during the current recession could be the “dominant players” in the industry:
â€œWhatever happens to crypto assets over the next few months, I expect crypto technology and finance will continue. It has the potential to deliver huge efficiencies and changes in market structure.”
Meanwhile, the President of El Salvador, Nayib Bukele spoke about the world of bitcoin in relation to the fall in BTC prices on Saturday. He tweeted that people should “stop looking at the charts and enjoy life” because he is confident prices will recover.
I see that some people are concerned or anxious #Bitcoin market price.
My advice: stop looking at the graphics and enjoy life. When you invest #BTC Your investment is safe and its value will increase immensely after the bear market.
Patience is the key.
— Nayib Bukele (@nayibbukele) June 19, 2022
I see that some people are concerned or worried about Bitcoin’s market price. My advice is this: stop looking at the chart and enjoy life. If you have invested in BTC, your investment is safe and its value will increase immensely after the bear market. Patience is the key.
President Bukele has been criticized for investing in cryptocurrency so far and suffering losses in the tens of millions, but Finance Minister Alejandro Zelaya has argued that these are not losses “because we haven’t sold the coins.”
At the time of writing, BTC is trading at $20,386, down 71% from its peak and down 0.7% over the past 24 hours. according to CoinGecko.
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