China warns that Bitcoin is heading for zero, but the BoE is looking on the bright side

China warns that Bitcoin is heading for zero, but the BoE is looking on the bright side – Mail Bonus

The Chinese government has taken advantage of the violent downturn in the cryptocurrency market by warning cryptocurrency investors that the price of Bitcoin is “on the verge of zero”.

The South China Morning Post reported on June 22 that the Chinese state-run news agency Economic Daily had issued a warning about the largest cryptocurrency in terms of market value to further deter citizens from using cryptocurrencies.

The Economic Daily reports that the West is to blame for creating a highly indebted market that is “full of optimization and pseudo-concepts” which it said was an “important external factor” contributing to Bitcoin’s volatility.

“Bitcoin is nothing more than a string of digital codes, and its returns come mainly from buying low and selling high,” the paper said.

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

The Chinese government banned Bitcoin mining last July and has grandiose plans to launch a digital currency (CBDC) called the Chinese Chinese Yuan (e-CNY) nationwide. It banned all cryptocurrency trading last September and banned the notorious foreign cryptocurrency exchange operating within the country in 2018.

The Chinese government is not the only one to weigh in on forecasts of where they will see Bitcoin prices go.

On Monday, DeMark Analytics founder and CEO Tom DeMark told Marketwatch that he believed the cryptocurrency market was in line with a prolonged decline in prices as BTC fell below 50% from its November high of $ 69,000.

“Such failures indicate that there is a high probability that it will take many years, if not decades, to recover to the highest levels of Bitcoin of all time.

However, there is still a chance of jumping back into the $ 40,000 range in the coming months, he said.

“This does not reduce the outlook for up to 50-56% recovery in the coming months, which means that bitcoin will fall back to $ 40,000- $ 45,000.

Contrary to Beijing’s warnings, the Bank of England (BOE) has begun to see the possibility of building up wealth in the cryptocurrency space during the bear market.

BOE Deputy Governor Jon Cunliffe told Bloomberg on June 22 that the cryptocurrencies that manage to stay afloat in the current downturn could be “dominant players” in the industry when things turn around.

“Whatever happens in the coming months regarding cryptocurrencies, I expect cryptocurrency technology and finance to continue. It has the potential for great optimization and changes in marketing structure. “

Meanwhile, El Salvador President Nayib Bukele addressed the Bitcoin world on June 19 regarding the declining price of BTC. He tweeted that people should “stop looking at the graph and enjoy life,” because he is sure that prices will improve.

President Bukele has been criticized for investing in the cryptocurrency and has suffered tens of millions in losses so far, but Finance Minister Alejandro Zelaya has argued that it is not a loss “because we have not sold the currency.

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At the time of writing, BTC is trading at $ 20,386, 71% down from the peak and 0.7% down over the last 24 hours, according to CoinGecko.