Bitcoin Soars Despite Warnings from China
The government of China has made substantial efforts to sway its citizens’ belief that Bitcoin would eventually become worthless. However, the predictions so far have been widely off-target. The pioneering cryptocurrency has registered around a 36% increase since the Chinese government issued its bleak forecast in 2022.
Last year, amid a bearish market, China attempted to seize the moment during a significant market dip, cautioning crypto investors that Bitcoin prices were “heading to zero.”
China’s Economic Daily Sounds Alarm
In June 2022, the Chinese national news media agency, Economic Daily, released a warning about Bitcoin. They assured their citizens that the asset was nothing more than a worthless “string of digital codes.”
However, the evidence has proved otherwise. According to data from CoinGecko, Bitcoin traded at around $20,000 when the Economic Daily published the article. A year later, Bitcoin is now trading at $28,852, marking an approximately 36% increase.
Bitcoin’s Resilient Performance Amid Volatility
While the crypto market has seen its share of ups and downs, Bitcoin’s resilience is clear. Despite dipping to $15,700 in November 2022, it bounced back and briefly crossed the $30,000 threshold in April 2023.
China’s Relationship with Crypto: A Brief History
China was among the first nations to impose regulations on cryptocurrency. In 2017, it banned crypto exchanges from offering services within the country. Yet, Bitcoin continued to ascend, hitting a staggering 1,900% surge to reach $20,000 by the end of the same year.
In 2021, the Chinese central bank coupled with various local authorities to intensify the crackdown on cryptocurrency activities. Despite these efforts, Bitcoin achieved its all-time high at around $68,000 in November 2021.
Even though China announced a crypto “ban” in 2021, it has remained the second-largest Bitcoin miner globally. The government has apparently never prohibited its citizens from hodling the cryptocurrency, instead offering legal protection for crypto investors.
