China is bearish on the cryptocurrency market’s future amid the uncertainty of Bitcoin (BTC). The leading crypto dropped to $19,000 before recovering over the $20,000 threshold.
Warning About Bitcoin’s Future
Economic Daily, a media source managed by the Central Committee of the Chinese Communist Party, issued an article on June 22 warning investors about the possibility of Bitcoin values “going to zero” after the crash of the crypto sector.
According to the article, 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.
At the time of publication, Bitcoin was trading at $20,566, representing a 4.47% decline on the day and a 3.58% loss over the preceding seven days, with some experts speculating that a Bitcoin correction towards $10,000 was still possible.
Bitcoin (BTC) price chart. Source: TradingView
Chinese Crypto Crackdown
Notably, the warning from state-run media echoes the government’s stance toward cryptocurrencies, leading to a crypto ban implemented in phases beginning in May 2021.
In September 2021, the government prohibited all digital currencies, citing environmental and money-laundering concerns. In June 2021, the government stopped all domestic crypto mining.
Despite the highly publicised crackdown, pertinent data indicates that hundreds of accessible nodes protecting the Bitcoin network are still operating in China.
It was projected in mid-May that Chinese traffic would contribute to around 20% of Bitcoin’s total hash rate between September 2021 and January 2022, after having decreased to zero in July in reaction to the ban.