The Chinese government has capitalized on the slump in the cryptocurrency market by warning crypto investors that bitcoin prices are “heading towards zero.”
South China Morning Post informed On June 22, China’s national news agency Economic Daily issued a warning about the largest cryptocurrency by market capitalization to further discourage citizens from using cryptocurrencies.
The Economic Daily report says the West is to blame for creating a highly leveraged market that is “full of manipulation and pseudo-technological concepts,” which it says is “an important external factor” that contributes to Bitcoin’s volatility.
“Bitcoin is nothing more than a set of digital codes and its profits mainly come from buying low and selling high,” the newspaper said.
“In the future, when investor confidence collapses or when sovereign countries declare Bitcoin illegal, it will return to its original value, which is completely worthless.”
The Chinese government banned bitcoin mining last July and has grand plans to launch its central bank digital currency (CBDC), called the Digital Chinese Yuan (e-CNY), across the country. He banned all cryptocurrencies transactions last September, and in 2018 banned foreign crypto exchanges from operating in the country.
The Chinese government isn’t the only one weighing up predictions as to where they think the price of bitcoin will go.
On Monday, DeMark Analytics founder and CEO Tom DeMark said Marketwatch, he believes that the cryptocurrency market is in line for a prolonged price decline because BTC has fallen below 50% from its November peak of $69,000.
“These crashes point to a high likelihood that bitcoin’s recovery to all-time highs will take many years, if not decades.”
However, it still has a chance to return to the $40,000 range within the next few months, he said.
“This does not negate the prospect of a 50%-56% recovery in the coming months, which would imply a rise in Bitcoin to $40,000-$45,000.”
Contrary to Beijing’s warnings, the Bank of England (BOE) has begun to see upside potential for wealth accumulation in the crypto space during a bear market.
This was stated by Deputy Governor of the Bank of England John Cunliffe. bloomberg June 22 that crypto firms that manage to stay afloat during the current downturn could become the “dominant players” in the industry when things change.
“Whatever happens in the next few months with crypto assets, I expect crypto technology and finance to continue to exist. It has the potential for huge efficiencies and changes in market structure.”
Meanwhile, El Salvadoran President Nayib Bukele addressed the world of Bitcoin on June 19 in regards to the fall in BTC prices. He tweeted that people should “stop looking at the chart and enjoy life” because he is confident that prices will bounce back.
I see some people are worried or worried #Bitcoin market price.
My advice: stop looking at the chart and enjoy life. If you have invested in #BTC your investment is safe and will rise in value significantly after a bear market.
Patience is the key.
— Nayib Bukele (@nayibbule) June 19, 2022
President Bukele has been criticized for investing in crypto and taking tens of millions of dollars in losses, but Finance Minister Alejandro Celaya said it was not a loss “because we didn’t sell the coins.”
$2.25B Bitcoin Options Expiration Friday May Prove $17.6K Was Not a BTC Bottom
At the time of writing, BTC is trading at $20,386, down 71% from its high and down 0.7% over the past 24 hours. according at CoinGecko.
Credit : cointelegraph.com