China warns Bitcoin is heading to zero but BoE looks on the bright side

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The Chinese government has taken advantage of the violent downturn in the crypto market by warning crypto investors that bitcoin prices are “heading towards zero.”

The South China Morning Post reported on June 22 that the Chinese national news media agency Economic Daily had issued a warning about the largest cryptocurrencies by market cap to prevent citizens from adopting the use of crypto.

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The Economic Daily report states that the West has been blamed for creating an over-leveraged market that is “full of manipulation and pseudo-technology concepts” that was a “significant external factor” that contributed to bitcoin’s volatility. gives.

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

“In the future, once investor confidence is broken or when sovereign countries declare bitcoin illegal, it will return to its original value, which is completely worthless.”

The Chinese government banned bitcoin mining last July and has grand plans to launch a central bank digital currency (CBDC) digital Chinese yuan (e-CNY) nationwide. It banned all cryptocurrency transactions last September, and in 2018 banned foreign crypto exchanges operating within the country.

The Chinese government isn’t the only one who predicts where they see the price of bitcoin.

On Monday, Tom DeMark, founder and CEO of market analysis firm Demark Analytics, told MarketWatch that he believes the crypto market is poised for a longer price cut as BTC drops 50 percent from its November peak of $69,000. % has fallen below,

“Such a breakdown has a high probability that many years, if not decades, will be needed to complete the recovery to the all-time bitcoin high.”

However, it is likely to come back in the $40,000 range in the next few months.

“This does not rule out the possibility of a recovery of 50-56% in the coming months, which means that Bitcoin will rally to $40,000-$45,000.”

Contrary to warnings from Beijing, the Bank of England (BOE) has begun to see the upward potential of wealth creation in the crypto space during a bear market.

BOE deputy governor John Cunliffe told Bloomberg on June 22 that crypto firms that manage to stay afloat during the current recession could be “major players” in the industry when things turn around.

“Whatever happens to crypto assets over the next few months, I expect crypto technology and finance to continue. It has great potential and potential for market structure changes.”

Meanwhile, El Salvador President Nayib Bukele addressed the bitcoin world on June 19 regarding the drop in BTC prices. He tweeted that people should “stop looking at the graph and enjoy life”, as he is confident the price will recover.

President Bukele has been criticized for investing in cryptocurrencies and making millions in losses so far, but Finance Minister Alejandro Zelaya has argued that they are not losses “because we haven’t sold the coins.”

related: Friday’s $2.25B Bitcoin Options Expiration Could Prove That $17.6K BTC Wasn’t Bottomed

According to CoinGecko, at the time of writing, BTC is trading at $20,386, down 71% from its highs and down 0.7% over the past 24 hours.