The Chinese authorities has capitalized on the violent downturn in the crypto market by warning crypto traders that bitcoin costs are “heading to zero.”
The South China Morning Post bitcoin-market-meltdown-prompts-fresh-warning-china-value-worlds” goal=”_blank” rel=”noopener nofollow”>reported on June 22 that Chinese nationwide news media company Economic Daily had issued the warning about the largest cryptocurrency by market cap to additional dissuade residents from adopting the use of crypto.
The Economic Daily report says the west is to blame for making a information/voyager-enters-into-500m-loan-agreement-with-alameda-amid-3ac-exposure”>highly-leveraged market that is “full of manipulation and pseudo-technology concepts” which it mentioned was an “important external factor” which contributes to bitcoin’s volatility.
“bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high,” mentioned the newspaper.
“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.”
The Chinese authorities information/china-returns-as-2nd-top-bitcoin-mining-hub-despite-the-crypto-ban”>banned bitcoin mining final July and has grand plans to launch its central financial institution digital foreign money (CBDC) referred to as the information/city-of-shenzhen-airdrops-30m-in-free-digital-yuan-to-stimulate-consumer-spending”>digital Chinese yuan (e-CNY) nation-wide. It banned all cryptocurrency information/technology-58678907″ goal=”_blank” rel=”noopener nofollow”>transactions final September, and information/ban-complete-china-blocks-foreign-crypto-exchanges-to-counter-financial-risks”>infamously banned overseas crypto exchanges from working inside the nation in 2018.
The Chinese Government isn’t the just one weighing in with predictions about the place they see bitcoin’s value going.
On Monday, founder and CEO of market evaluation agency DeMark Analytics Tom DeMark bitcoin-downside-in-march-heres-the-good-and-bad-news-the-technical-strategist-now-has-for-the-cryptocurrency-11655719167?mod=search_headline” goal=”_blank” rel=”noopener nofollow”>instructed Marketwatch he believes the crypto market is in line for prolonged price reductions as a result of bitcoin-price”>BTC has fallen beneath 50% from its November peak of $69,000,
“Such breakdowns bespeak a high probability that recovery to the all-time bitcoin highs will require many years, if not decades, to accomplish.”
However there is nonetheless an opportunity for it to bounce again into the $40,000 vary inside the subsequent few months he mentioned.
“This does not negate the prospect of up to 50-56% recovery over upcoming months which implies bitcoin rally back to $40,000-$45,000.”
In distinction to Beijing’s warnings, the Bank of England (BOE) has begun to see the upside potential of constructing wealth in the crypto house throughout a bear market.
Deputy Governor for the BOE Jon Cunliffe instructed information/articles/2022-06-22/crypto-crash-survivors-could-become-tomorrow-s-amazons-boe-says” goal=”_blank” rel=”noopener nofollow”>Bloomberg on June 22 that the crypto corporations that handle to keep afloat throughout the present downturn could possibly be the “dominant players” in the business when issues flip round.
Meanwhile El Salvador’s President Nayib Bukele information/el-salvador-president-addresses-bear-market-concerns-with-bitcoin-hopium”>addressed the bitcoin world on June 19 with regard to the slumping BTC costs. He tweeted that folks ought to “stop looking at the graph and enjoy life,” as a result of he is assured that costs will get better.
My recommendation: cease taking a look at the graph and luxuriate in life. If you invested in #BTC your funding is secure and its worth will immensely develop after the bear market.
Patience is the key.
— Nayib Bukele (@nayibbukele) June 19, 2022
President Bukele has come underneath hearth for investing in the cryptocurrency and sustaining tens of thousands and thousands in losses to this point but Minister of finance Alejandro Zelaya has argued that they don’t seem to be losses “because we have not sold the coins.”
As of the time of writing, BTC is buying and selling at $20,386, 71% down from its excessive and 0.7% down over the previous 24 hours bitcoin” goal=”_blank” rel=”noopener nofollow”>in accordance to CoinGecko.