China fears Bitcoin will eventually reach zero while the BoE sees the positive
The official Chinese national news media source cautions readers from acquiring and using Bitcoin by stating that Bitcoin’s value could drop to zero.
With Bitcoin prices “heading to zero,” the Chinese government has gained from the sudden decline in the crypto market by alerting investors.
On June 22, the South China Morning Post stated that the Chinese national news media source Economic Daily had published a warning concerning the most valuable cryptocurrency in order to further deter people from implementing the use of cryptocurrency.
According to the Economic Daily report, the west is responsible for generating a highly leveraged market “full of manipulation and pseudo-technology concepts,” which it asserts is an “important external factor” contributing to Bitcoin’s volatility.
The publication stated that “Bitcoin is nothing more than a string of digital codes, and its returns mainly come from buying low and selling high.”
“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.”
In July of last year, the Chinese government outlawed Bitcoin mining, and it has big ambitions to introduce the digital Chinese yuan (e-CNY), the country’s national digital currency, in the near future. It banned all cryptocurrency transactions in September of last year and also infamously banned foreign cryptocurrency exchanges from conducting business there in 2018.
Not just the Chinese government has made forecasts regarding the future of the price of bitcoin.
Tom DeMark, the founder and CEO of market analysis firm DeMark Analytics, told Marketwatch on Monday that he thinks the crypto market is set for sustained price declines because BTC has dropped below 50% from its top of $69,000 in November.
“Such breakdowns bespeak a high probability that recovery to the all-time Bitcoin highs will require many years, if not decades, to accomplish.”
However, he feels it has the possibility of returning to the $40,000 range in the coming months.
“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.”
The Bank of England (BOE) has started to recognize the benefits of accumulating funds in the cryptocurrency sector during a down market, in contrast to Beijing’s warnings.
According to Jon Cunliffe, deputy governor of the BOE, the crypto firms that are able to survive the current crisis could end up being the “dominant players” in the market when things start to recover.
“Whatever happens over the next few months to crypto assets, I expect crypto technology and finance to continue. It has the possibility of huge efficiencies and changes in market structure. “
On June 19, El Salvador’s President Nayib Bukele spoke to the Bitcoin community about the declining BTC prices. He stated in a tweet that he is certain that prices will rise again and advised people to “stop looking at the graph and enjoy life.”
Alejandro Zelaya, the minister of finance, has stated that the losses are not losses “because we have not sold the coins,” in response to criticism that President Bukele lost tens of millions investing in cryptocurrencies.
According to data, BTC is currently trading at $20,694, down 0.4% over the last hour and 71% off its high.