Bitcoin surges 36% despite China’s repeated warnings about its worthlessness. The cryptocurrency has defied expectations and experienced a substantial 36% increase since the Chinese government declared it would become worthless in 2022.
China’s Warnings and Failed Predictions
In a bid to take advantage of a bear market, China issued warnings to crypto investors, claiming that Bitcoin prices were on a one-way trajectory towards zero.
In June 2022, the Chinese national news media agency, Economic Daily, published an article dismissing Bitcoin as a worthless “string of digital codes.” It predicted that Bitcoin would return to its original value of zero if investors lost confidence or if sovereign countries deemed it illegal.
However, Bitcoin has not only defied the warnings but has also gained significant value since the article’s release. CoinGecko data reveals that Bitcoin was trading at approximately $20,000 when the Economic Daily published its piece. Fast forward twelve months, and Bitcoin’s value now stands at $28,852, marking an impressive 36% increase.
Volatility and Fluctuations
While Bitcoin has experienced overall growth, it has not been without its ups and downs. Over the past year, the cryptocurrency endured fluctuations, with its price dropping to as low as $15,700 in November 2022.
However, in April 2023, Bitcoin briefly surpassed the $30,000 mark, illustrating its resilience and potential for substantial gains.
China’s Regulatory Actions and Contradictory Stance
China has been at the forefront of crypto regulation, enacting several measures to control and restrict cryptocurrency activities. In 2017, the country banned cryptocurrency exchanges from operating within its borders. Despite this ban, Bitcoin continued to soar, reaching an all-time high of $20,000 by the end of that year.
In 2021, China’s central bank announced another crypto ban, joining forces with various authorities to crack down on local crypto activities. However, despite the ban, Bitcoin achieved an astonishing all-time high of approximately $68,000 in November 2021.
Furthermore, despite its regulatory actions, China remains the second-largest Bitcoin miner globally. The country’s contradictory stance reveals a complex relationship between China’s official stance and the actions of its citizens.
Read More:
Crypto Regulatory Bill Approved by The UK House of Lords
Alibaba Appoints Crypto-Friendly Chair, Joe Tsai to Replace Daniel Zhang