China warns Bitcoin price could fall to $0

China warns people that Bitcoin price could drop to 0 dollar. The government also says that citizens should not invest in crypto coins.

Chinese government warns residents

The Chinese government warned crypto investors shortly after the crypto market crash that the Bitcoin price could drop to $0. The statement was made in a report by the national Chinese media agency Economic Daily.

The Economic Daily report says the West is responsible for creating a highly leveraged market that is riddled with manipulation and pseudo-technology concepts. According to the report, that is a major external factor contributing to Bitcoin’s volatility.

“Bitcoin is nothing more than a series of digital codes. Returns are mainly due to speculation, the newspaper wrote. The newspaper further stated:

In the future, once investor confidence collapses or when countries declare Bitcoin illegal, it will return to its original value, which is completely worthless.

The Chinese government also banned Bitcoin mining last July. However, the country has big plans to launch its own digital currency, the digital Chinese yuan (e-CNY).

Bitcoin price predictions

The Chinese government is not alone in making a Bitcoin price prediction.

On Monday, founder and CEO of market analysis firm DeMark Analytics said he believes the crypto market is going to face a prolonged price drop. According to him, it could take decades for the price to return to its peak level. He wrote:

Such price crashes indicate a high probability that the recovery to all-time highs will take many years, if not decades.

Bank of England has faith in crypto assets

Contrary to China’s warnings, the Bank of England is just beginning to see the potential of investing in cryptocurrencies during the bear market.

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The bank’s vice-governor, Jon Cunliffe, told Bloomberg on Wednesday that the crypto firms that manage to survive the current downturn will be the “dominant players” in the industry when things turn around again:

Whatever happens to the crypto world in the coming months, I expect crypto technology and finance to continue. It has the potential of huge efficiencies and changes in the market structure.

Meanwhile, El Salvador’s President Nayib Bukele also spoke about falling BTC prices. He tweeted that people should “stop looking at the chart and enjoy life”. He is confident that prices will recover.

President Bukele has come under fire for investing in Bitcoin and losing tens of millions as a result. However, Finance Minister Alejandro Zelaya has argued that these are not losses “because they did not sell the coins”. At the moment, BTC is trading at $20,386. This is 71% lower than the high and 0.7% lower in the last 24 hours.

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