Amid uncertainty that has engulfed the cryptocurrency market after an prolonged interval of bearishness, throughout which its flagship asset, Bitcoin (BTC), briefly slumped below $19,000, earlier than returning above the $20,000 mark, pessimistic warnings about its future are coming from China.
Particularly, the media outlet Financial Every day, run by the Central Committee of the ruling Chinese language Communist Celebration, printed an article on June 22, warning traders concerning the danger of Bitcoin costs “heading to zero,” after the carnage of the crypto market, South China Morning Submit reported.
In accordance to the article:
“Bitcoin is nothing greater than a string of digital codes, and its returns primarily come from shopping for low and promoting excessive. (…) Sooner or later, as soon as traders’ confidence collapses or when sovereign nations declare bitcoin unlawful, it is going to return to its unique worth, which is completely nugatory.”
At press time, Bitcoin was buying and selling again above the $20,000 mark, at $20,566, which is a 4.47% drop on the day and a 3.58% loss throughout the earlier seven days, in accordance to the information retrieved from CoinMarketCap, with some analysts opining that Bitcoin correction towards $10,000 was still on the table.
Chinese language crypto crackdown
It’s price noting that the warning from state-operated media displays the Chinese language authorities’s harsh stance towards crypto, which culminated in an efficient crypto ban that was carried out in stages, beginning with Could 2021.
In June 2021, the federal government banned all home crypto mining, whereas it altogether outlawed digital currencies in September, citing considerations over their impact on the atmosphere, in addition to folks utilizing them for cash laundering.
Regardless of the extensively publicized crackdown, related information has proven that dozens of reachable nodes securing the Bitcoin network are still running on the territory of China, as Finbold reported in early June.
In mid-Could, Finbold reported on the visitors from China accounting for about 20% of Bitcoin’s total hash rate from September 2021 to January 2022, after it beforehand dropped to zero in July, in response to the ban.