The Chinese government has capitalized on the sharp decline in the cryptocurrency market by warning cryptocurrency investors that bitcoin prices are “heading towards zero. »
an South China Morning Post reported on June 22 that the China National News Agency The Economic DáilY issued this warning on the largest cryptocurrency by market capitalization to further discourage citizens from adopting the use of cryptocurrency.
According to a report fromEconomic daily, The West is to blame for creating a highly leveraged market that is “full of manipulative and pseudo-technological concepts,” which it says is a “significant external factor” that contributes to bitcoin’s volatility.
“Bitcoin is nothing more than a string of digital codes, and its returns come primarily from low buy and high sell,” the paper said.
“In the future, as soon as the confidence of investors or sovereign countries declines that bitcoin is illegal, it will return to its original value, which is worthless. »
The Chinese government banned Bitcoin mining last July and has big plans to launch its digital currency central bank (CBDC) known as Chinese digital yuan (e-CNY) nationwide. It banned all cryptocurrency transactions last September, and infamously banned foreign currency exchanges from operating in the country in 2018.
The Chinese government is not the only one influencing predictions about how the price of bitcoin will change.
On Monday, DeMark Analytics market founder and CEO Tom DeMark told Marketwatch that he thinks the cryptocurrency market is catching up with long price cuts as BTC fell less than 50% from the high of $ 69,000 last month. November.
“Such an outbreak suggests that there is a strong likelihood that it will take many, if not decades, for bitcoin to recover to all-time highs. »
However, there is still a chance that it will bounce back into the $ 40,000 range in the coming months, he said.
“This does not negate the prospect of a rally of up to 50-56% in the coming months, suggesting a rally in bitcoin towards $ 40,000-45,000. »
Contrary to warnings from Beijing, the Bank of England (BOE) has begun to see the potential upside of building wealth in the cryptocurrency space during a bear market.
BOE Deputy Governor Jon Cunliffe told Bloomberg on June 22 cryptocurrency managers that manage to stay afloat during the current downturn could become the “key players” in the industry when things turn around.
“Whatever happens to the crypto-assets in the coming months, I expect cryptocurrency 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 over the BTC price crash. He tweeted that people should “stop staring at the chart and enjoy life” because he is confident that prices will improve.
I see that some people are worried or anxious about these #Bitcoin market price.
My advice: stop looking at the graph and enjoy life. If you invest in #BTC your investment is safe and its value will grow exponentially after the bear market.
Patience is the key.
– Nayib Bukele (@nayibbukele) June 19, 2022
I see some people worried or upset about the #Bitcoin market price. My advice: stop staring at the graph and enjoy life. If you have invested in #BTC, your investment is safe and its value will increase significantly after the bear market. Patience is the key. – Nayib Bukele (@nayibbukele), June 19, 2022
President Bukele has been criticized for investing in cryptocurrency and has suffered thousands of millions in losses so far, but Finance Minister Alejandro Zelaya has claimed that these are not losses “because we did not sell the shares.”
Read also: Friday’s expiration of $ 2.25 billion in bitcoin options may not create $ 17,600 for BTC
As of this writing, BTC is trading at $ 20,386, down 71% from its peak and down 0.7% in the past 24 hours, according to CoinGecko.