The government of China has again attacked the cryptocurrency market amid the ongoing bearish sentiment. The government has warned its citizens that they could make massive losses because the prices of Bitcoin were “heading to zero.”
China says Bitcoin will be worthless
A South China Morning Post report on June 22 said that a Chinese state media had published a warning over cryptocurrency investments. The warning said that the world’s largest cryptocurrency by market cap would drop to zero to urge citizens not to invest in the crypto space because of the volatility.
A report by the Economic Daily said that the recent market crash was attributed to Western countries. The report said that the west created a highly-leveraged crypto market that was easily manipulated and relied on pseudo technologies. The report said that these factors stirred Bitcoin’s volatility.
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The report noted that Bitcoin was “nothing more than a string of digital codes,” and returns from the sector were only earned after people bought low and sold 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.”
The crypto environment in China has been rough over the past year. The government banned Bitcoin mining and trading last year. Despite these efforts, crypto activities in China are still high, with the country ranking as the second-largest Bitcoin miner by hash rate, according to a recent report.
Besides cryptocurrencies, non-fungible tokens are also becoming increasingly popular in China. The number of NFT firms in the country has increased five times since February to surpass 500.
Bank of England sees potential in the bear market
Despite the current bearish sentiment, the Bank of England is seeing potential in focusing in the cryptocurrency market. IN an interview with Bloomberg, Jon Cunliffe, the deputy governor at the Bank of England, said that cryptocurrency firms that had remained unaffected by the bear market were the dominant ones in the sector.
“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,” the BOE said
China’s remarks come amid an intense bearish sentiment that has wiped $1 trillion from the market since the year started. At the time of writing, Bitcoin was trading at $20,586, down by 70% from its all-time high.
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