China’s official national media warns that the price of Bitcoin could drop to zero. But the Bank of England (BOE) is looking on the bright side.
Big warning for Bitcoin from China
The Chinese government has warned that Bitcoin has “gone to zero”, causing concern amid the sharp decline in the cryptocurrency market. The news came Wednesday from the South China Morning Post. China’s national news agency Economic Daily reported that it has issued a warning on the largest cryptocurrency by market capitalization to further dissuade citizens from adopting the use of cryptocurrencies.
The Economic Daily report states that the West is an “important external factor” contributing to Bitcoin’s volatility. It also finds the West responsible for creating a highly indebted market “full of concepts of manipulation and false technology”. The journal contains the following statement:
Bitcoin is nothing more than a set of digital codes. Its return comes mainly from low purchases and high sales. In the future, when investor confidence collapses or sovereign countries ban Bitcoin, it will revert to its original value, which was completely worthless.
The Chinese government banned Bitcoin mining last July
However, it plans to roll out the digital Chinese yuan (e-CNY) nationwide as a CBDC. cryptocurrency.com As mentioned in the news, China banned all cryptocurrency transactions last September. Meanwhile, it also blocked foreign cryptocurrency exchanges from operating within the country in 2018.
Only the Chinese government does not expect collapse
Tom DeMark, CEO of market analyst DeMark Analytics, updated his forecast for participation in Marketwatch on Monday. He said he believes the market will stay that way for a long time, as it has fallen below 50% from November’s peak of $ 69,000:
Such crashes indicate a high probability that it will take many years, if not decades, for Bitcoin to reach a return to ATH levels.
However, there is still a chance to get back in the $ 40,000 range in the coming months:
This does not rule out the possibility of a recovery of up to 50-56% in the coming months. This means that the Bitcoin rally will return to $ 40,000-45,000.
The Bank of England looks on the bright side
Contrary to warnings from China, the Bank of England (BOE) is optimistic about the market. It highlights the upside potentials of wealth creation in the cryptocurrency market during a bear market. BOE Vice President Jon Cunliffe told Bloomberg Wednesday that cryptocurrency companies that survived the current recession could become “dominant players” in the industry when things change:
Whatever happens to cryptocurrencies in the coming months, I expect crypto technology and finance to continue. There is great efficiency and the possibility of change in the structure of the market.
Meanwhile, El Salvador President Nayib Bukele spoke to investors about the decline on Saturday. He tweeted that people should “stop looking at the chart and enjoy life” because he is sure prices will correct.
President Bukele is in a flood of criticism for triggering tens of millions of cryptocurrency losses. However, Finance Minister Alejandro Zelaya says they are not lost “since we don’t sell cryptocurrencies”.
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